Investing.com — Morgan Stanley analysts are bullish on AT&T Inc (NYSE:T) and T-Mobile US Inc (NASDAQ:TMUS), rating both stocks “overweight” for their growth potential in wireless and mobile services. fiber, respectively.
“We view the current structure of the US wireless industry as supporting growth, while broadband competition is likely to intensify,” the analyst wrote.
AT&T, which previously had “equal weight,” was named a top pick in the telecommunications and cable sector. Morgan Stanley (NYSE:MS) also raised its price target on the stock from $19 to $28.
While the bank downgraded Comcast Corp (NASDAQ:CMCSA) to “equal weight” due to challenges in broadband competition and expected pressure on EBITDA growth in 2025.
Brokerage said T-Mobile stock has been an outperformer for years, but tailwinds from brand, customer service and network leadership, combined with a lack of headwinds from revenue streams legacy, support industry-leading growth into the future.
Morgan Stanley expressed caution on the cable segment overall, maintaining “equal weight” ratings for Charter and Liberty Broadband (NASDAQ:LBRDA), and an “underweight” rating for Sirius XM (NASDAQ:SIRI).
The note also highlighted a cautious credit outlook and recommended select bonds in Charter and EchoStar.
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