Wells Fargo Warns AT&T May Lose Market Share to SpaceX’s Starlink

Wells Fargo has initiated coverage of AT&T with an underweight rating, setting an $18 price target that implies roughly 15% downside from Tuesday’s close. Analyst Steven Cahall warned that SpaceX’s Starlink could gain near‑term traction in broadband while posing a longer‑term threat to wireless services. He noted that outside AT&T’s fiber footprint, competition will intensify and the company’s wireless subscriber additions are most vulnerable.

AT&T’s shares have already slipped about 15% year‑to‑date amid high infrastructure costs and the commoditization of telecom services. The analyst added that AT&T is less likely than its rivals to pursue a mobile virtual network operator partnership with Starlink, meaning the carrier must excel in fiber and convergence to drive share upside.

Wells Fargo’s bearish stance contrasts with the broader Wall Street consensus: of the 29 analysts tracking AT&T, 14 rate the stock a hold and 15 maintain a buy or strong‑buy recommendation, according to LSEG data. Despite the downgrade, AT&T shares were little changed in premarket trading, and the company did not respond to CNBC’s request for comment.

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