Bernstein cuts its rating on telecom operator AT&T to market perform from outperform and adjusts the price target to 24 dollars from 25 dollars. The reason is increased competition from Spacex and its satellite-based broadband service Starlink, Investing.com reports.
The research firm expects prolonged uncertainty surrounding Starlink’s impact on the telecom sector as capacity is expanded.
Starlink’s broadband customer base has approximately doubled annually over the past four years. Bernstein does not yet see a direct threat to fiber operators, but believes increased competition could put pressure on cable operators, particularly in the low-price segment.
