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

The firm pointed to incumbent carriers’ pricing moves and expected fourth-quarter seasonality as additional pressures.

• Bernstein maintained its ‘Market Perform’ rating on all four stocks.
• Analysts remain divided on the competitive threat, with Raymond James calling near-term concerns “overblown.” 
• JPMorgan said that without a deal with an existing carrier, SpaceX would likely need to build a ground network using macro towers. 

Verizon (VZ), Comcast (CMCSA), T-Mobile US (TMUS) and Charter Communications (CHTR) received price target cuts from Bernstein on Tuesday, citing growing competition from SpaceX’s (SPCX) planned entry into the U.S. mobile carrier market.

Bernstein reiterated its ‘Market Perform’ rating on all four stocks, according to a note cited by The Fly. The firm said competitive pressure from SpaceX was compounded by recent pricing moves from incumbent carriers and expected fourth-quarter seasonality.

Ticker	Company	Bernstein rating	New PT	Prior PT	Implied upside
VZ	Verizon Communications	Market Perform	$45.00	$47.00	5.2%
CMCSA	Comcast	Market Perform	$23.00	$28.00	11.2%
TMUS	T-Mobile US	Market Perform	$180.00	$220.00	18.5%
CHTR	Charter Communications	Market Perform	$120.00	$150.00	17.1%

Despite the bearish commentary, CHTR stock led gains among the cohort, up 2.3% in morning trade. TMUS stock was up 1.4%, CMCSA stock gained 1%, and VZ stock edged 0.5% higher. 

On Stocktwits, retail sentiment around TMUS and VZ shares trended in ‘extremely bullish’ territory over the past day. Sentiment around CHTR slipped to ‘bearish’ from the ‘neutral’ zone, while sentiment around CMCSA remained in ‘neutral’ territory. 

SpaceX’s Starlink Mobile Plans Put Carriers On Alert

The price target cuts follow SpaceX’s announcement last week that it plans to expand Starlink into a major U.S. mobile carrier. The company said it was acquiring a low-band spectrum portfolio in the 800 MHz band, which it said would close the remaining technical gap.

The announcement triggered a sharp selloff in major wireless stocks on Friday. The three largest U.S. carriers fell by double digits, shedding more than $50 billion in combined market value. Verizon recorded its steepest one-day decline since 2002.

The Rest Of Wall Street Is Less Bearish

Analysts have differed on how quickly SpaceX could become a meaningful threat to established carriers. Raymond James called concerns about a near-term challenge to T-Mobile “overblown,” while Morningstar said Verizon’s existing network gives established operators a significant advantage.

“We believe the recent fears over competition from SpaceX are overblown, as they are 3+ years away from becoming reality, and competition from larger players is nothing new to T-Mobile,” Raymond James said. The firm upgraded T-Mobile to 'Outperform' from 'Market Perform' and set a $170 price target.

Morningstar said the spectrum deal adds uncertainty for wireless carriers but maintained its base case that Starlink would not threaten their wireless operations. It raised its uncertainty ratings for Verizon, T-Mobile and AT&T to 'High' from 'Medium', noting that SpaceX still needs more spectrum and thousands of sites to build a competitive terrestrial network.

JPMorgan said that without a deal with an existing carrier, SpaceX would likely need to build a ground network using macro towers. SpaceX is targeting 2027 for its next-generation satellites, with upgraded service expected by the end of that year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<