SpaceX Starlink Mobile Push Prompts Bernstein To Cut VZ, TMUS, CMCSA, CHTR Stocks’ Price Targets

T-Mobile's CTO responded to SpaceX's $8B spectrum purchase for Starlink Mobile, stating it won't easily compete with T-Mobile's established network. SpaceX aims to become a major US carrier, while T-Mobile emphasizes the significant investments and time required to build a competitive wireless network. Morningstar increased uncertainty on T-Mobile stock due to potential market disruption.

Bernstein downgraded AT&T to Market Perform with a $24 price target, citing competitive pressure from SpaceX's Starlink broadband expansion. Analyst Laurent Yoon expects prolonged debate over Starlink's impact. Price targets also cut for Verizon, T-Mobile, and Comcast, all rated Market Perform.

Telecom stocks fell nearly 10% last week, driven by SpaceX's $8B spectrum acquisition and rising Treasury yields. AT&T, Verizon, Charter, and T-Mobile shares declined, while American Tower and Crown Castle rose. T-Mobile lost 13.3% on Oct 9, citing competitive threats and falling subscription prices.

Verizon (VZ) stock rose 2.4% after a 9% drop on October 9 following SpaceX's spectrum deal. Analysts argue the selloff was excessive, with Arete Research reiterating a Buy rating and $62 price target. Verizon's forward P/E is 8x, below the sector average, and Q3 free cash flow surged 24%. The company also expanded its 6G Innovation Forum. Broader market trends had little impact on the rally.

SpaceX acquired a nationwide low-band spectrum license portfolio for $8 billion, aiming to challenge major U.S. telecom carriers with Starlink Mobile. The deal, pending FCC approval, includes 14 MHz of 800 MHz band spectrum. SpaceX plans to combine this with its Gen2 satellite constellation for mobile broadband service, potentially impacting AT&T, Verizon, and T-Mobile. Full commercial service is expected by 2035 at the earliest, according to observers.

T-Mobile US (TMUS) stock rose 2.9% to $152.92 after Raymond James upgraded it to Outperform with a $170 price target, citing SpaceX's acquisition of spectrum as overreacted to. Analysts highlighted T-Mobile's spectrum and 5G infrastructure as competitive advantages. The rally followed a sharp decline to near its 52-week low, driven by bargain hunting and positive ratings from other firms. The broader market remained flat, making TMUS's gain company-specific.