Bernstein Downgrades AT&T as Starlink Expands Wireless Reach

Bernstein downgraded AT&T to market perform from outperform and cut its price target to $24 from $25 as SpaceX expands Starlink into wireless connectivity, increasing competitive pressure on traditional carriers.

Bernstein analyst Laurent Yoon said the move reflects pressure from SpaceX’s expansion across broadband and wireless services. “We are downgrading AT&T ... to reflect the ongoing — and justifiable — pressure from SpaceX’s foray into both broadband and wireless,” Yoon wrote.

SpaceX’s Starship 14 mission launched last month and deployed its first batch of Starlink V3 satellites. The launch marked the start of what Bernstein described as a likely significant expansion of Starlink’s wireless capacity.

SpaceX has also agreed to acquire up to 14 megahertz of paired spectrum in the 800 MHz band. The spectrum agreement has pressured shares of major U.S. carriers as SpaceX moves toward a broader wireless strategy. The agreement has pressured AT&T, Verizon and T-Mobile shares.

Bernstein said newer satellite-based companies and startups could accelerate pressure on established carriers’ pricing power. Yoon described Starlink’s potential pricing impact as an ongoing investor debate and said the competitive overhang may persist as the V3 constellation expands.

“We have little doubt that Starlink has a long runway to continue attracting subscriptions,” Yoon wrote. “The degree of disruption remains debatable.”

AT&T shares have fallen more than 9% in 2026, underperforming the broader market. Of 27 analysts covering the company, 15 have buy or strong-buy ratings.