Investing.com reports that Morgan Stanley’s analysts are optimistic about the prospects of AT&T Inc and T-Mobile US Inc, giving both stocks an “overweight” rating due to their growth potential in fiber and wireless services.
According to the analysts, the current framework of the US wireless industry supports growth, although there could be increased competition in the broadband sector.
AT&T, which was previously rated as “equal-weight,” has now been spotlighted as a top choice within the telecom and cable industry. Reflecting this renewed confidence, Morgan Stanley has increased its price target for AT&T’s stock from $19 to $28.
In contrast, Comcast Corp’s stock was downgraded to “equal-weight” amid concerns about the intensifying competition in broadband and potential pressures on EBITDA growth anticipated in 2025.
Morgan Stanley mentioned that T-Mobile has consistently outperformed over the years. The combination of strong brand influence, excellent customer service, and leading network capabilities, along with the lack of setbacks from older revenue streams, sets the stage for continued impressive growth.
When it comes to the broader cable segment, Morgan Stanley remains cautious, maintaining “equal-weight” ratings on Charter and Liberty Broadband and rating Sirius XM as “underweight.”
The report also points to a wary stance on credit, advising careful selection of bonds, particularly mentioning Charter and EchoStar as potential options.
Related articles discuss Morgan Stanley’s upgrade of AT&T amidst the stiffening broadband competition and their decision to downgrade Comcast. Moreover, they touch on a call from VW’s union for a resolution in critical talks before Christmas, and a slight decline in the Moroccan All Shares index at the close of trading.
