Morgan Stanley has made significant adjustments in the U.S. telecommunications sector, upgrading AT&T (T, Financial) and T-Mobile US (TMUS) to "Overweight" while downgrading Comcast (CMCSA) to "Equal-weight." The changes are based on growth potential and market performance.
AT&T is favored for its fiber products, offering an 18% upside to a $28 target price, with potential for a 40% increase in a bull market scenario. T-Mobile US is lauded for its brand and customer service, supporting its industry-leading position.
Conversely, Morgan Stanley is cautious about the cable industry, predicting challenges for Comcast due to broadband trends and EBITDA growth, with expected broadband customer losses until 2027. Charter Communications (CHTR) is also rated "Equal-weight" due to slower wireless expansion.
