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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuAT & T could come under pressure as SpaceX deepens its push into wireless connectivity services, according to Bernstein. The investment firm downgraded AT & T to market perform from outperform. It also lowered its price target to $24 from $25, implying roughly 7% upside from Monday’s close. “We are downgrading AT & T …to reflect the ongoing – and justifiable – pressure from SpaceX’s foray into both broadband and wireless, further exacerbating recent pricing moves by incumbents and expected Q4 seasonality,” analyst Laurent Yoon said Monday in a note to clients. “In the current environment, we find it increasingly difficult to justify an Outperform rating on incumbent operators, even at discounted prices, as volatility seems inevitable.” Last month, SpaceX launched its Starship 14 mission, successfully deploying its first batch of Starlink V3 satellites. That marked the beginning of “what is likely to be a significant capacity expansion” for the company’s wireless service called Starlink, Yoon said. T YTD mountain T in 2026 The Elon Musk-led company’s bid to expand its wireless connectivity business underscores the threat newer satellite-based companies pose to traditional telecom firms. Startups are gaining more market share in wireless, and that could accelerate an erosion in established telecom players’ pricing power, per Bernstein. As a result, SpaceX’s foray into wireless is likely to kick off a “prolonged investor debate around Starlink’s impact and the likelihood of Starlink’s pricing action,” according to Yoon. “We have little doubt that Starlink has a long runway to continue attracting [subscriptions],” the analyst wrote. “The degree of disruption remains debatable, but the overhang is unlikely to subside as the V3 constellation scales and Starlink gains flexibility to compete more aggressively.” Bernstein’s call goes against consensus on the Street. Of the 27 analysts covering AT & T, 15 have a buy or strong buy rating on the stock, LSEG data shows. Shares of AT & T have fallen more than 9% in 2026, underperforming the overall market. SpaceX, which went public earlier this year, is up 17% in the past three months. Bernstein was one of the banks involved in the IPO.Read More