Morgan Stanley starts bullishly on AT&T and T-Mobile US, cuts rating on Comcast

Morgan Stanley started coverage of major U.S. telecoms, AT&T (NYSE:T) and T-Mobile US (NASDAQ:TMUS), with an “overweight” rating on Monday. They see growth driving outperformance, led by product leadership in fiber at T and wireless at TMUS.
“We see the most compelling risk/reward in AT&T with 18% upside to our $28 price target and 40% upside to our bull case against just 10% downside to our bear case,” MS analysts said in their research note dated December 16.
They have noted that TMUS shares have outperformed for years, but the tailwinds from brand, customer service, and network leadership combined with the lack of headwinds from legacy revenue streams “support industry-leading growth ahead.”
MS analysts said they expect cable to face challenging broadband trends and EBITDA growth in 2025 and downgraded media and cable giant Comcast (NASDAQ:CMCSA) to “equal weight” from “overweight.” They expect residential broadband customer losses for CMCSA to continue through 2027.
The research firm also noted that Comcast has scaled its wireless business a bit more slowly than rival Charter Communications (NASDAQ:CHTR), which has been more aggressive in promoting, marketing, and bundling Spectrum mobile. The research firm is staying “equal weight” on CHTR.

Tags: T