Major Banking Ratings | Wells Fargo: Cautious on the Telecom Sector, Starlink Competition Threat Cannot Be Ignored
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Glonghui July 9|Wells Fargo has initiated coverage ratings on the three major U.S. wireless telecom operators and holds a cautious view on the overall sector, noting that SpaceX’s Starlink poses an increasingly severe competitive threat to fixed wireless access business and postpaid user growth. The bank assigned AT&T an “Underweight” rating with a target price of $18, stating that it is the least likely operator to reach a Mobile Virtual Network Operator (MVNO) agreement with Starlink, and thus faces the greatest risk in satellite competition. Verizon and T-Mobile both received a “Hold” rating, with target prices of $43 and $170 respectively.
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