Bernstein analysts initiated coverage on major U.S. telecom stocks, rating AT&T, Verizon, and T-Mobile based on their market positions and growth outlooks. AT&T received an “Outperform” rating with a $28 price target due to its successful refocus on core telecom operations, investments in fiber, and strong broadband growth potential. Despite challenges in its Business Wireline segment, its stable core operations and appealing dividend yield make AT&T a standout.
T-Mobile was rated “Market Perform” with a $265 price target, reflecting its significant market share gains in broadband and a strong position in 5G thanks to its mid-band spectrum from the Sprint merger. Verizon also earned a “Market Perform” rating, with a $48 price target. While its Fixed Wireless Access business has outperformed, Verizon’s smaller fiber footprint and recent market share losses limit its broadband growth prospects.
Bernstein highlighted the sector’s stable growth, driven by broadband and wireless demand, noting that 5G investments are transitioning toward efficiency and bundling strategies. AT&T stands out among the three for its growth focus and dividend appeal.