Analysts see limited near-term impact from Starlink Mobile on AT&T, citing technological challenges and the investment needed to compete with major wireless carriers. AT&T expects average revenue per fiber user to remain under pressure in Q4 as uptake of discounted bundles increases.
AT&T expects average revenue per fiber user to remain under pressure in Q4 as more customers take discounted bundles, highlighting a trade-off between subscriber growth and customer spending. Telecom providers are relying on customer retention as SpaceX's wireless ambitions raise concerns about competition.
BofA Global Research said Starlink's wireless service is not a near-term threat, citing technological challenges that could affect service quality, and sees greater potential in AI-related opportunities than traditional wireless services. J.P. Morgan and TD Cowen said Starlink Mobile may weigh on sentiment but is likely to have limited near-term business impact given the cost of competing with major carriers. Bernstein said Starlink is not an immediate threat, though its longer-term potential to become a stronger competitor remains an investor concern.
The median price target from 27 brokerages covering AT&T is $28. BofA Global Research's price objective is $34; J.P. Morgan's target is $31; TD Cowen's is $33; and Bernstein's is $24.
