AT&T (T) stock is under significant pressure on June 3 after Oppenheimer analyst Timothy Horan downgraded it to “Perform” and removed the price target entirely.
In his research note, Horan issued a broad warning that satellite broadband is no longer a distant threat to AT&T now that SpaceX will debut on Nasdaq next week.
More Barchart news
His bearish call refers to AT&T stock having already been in a downtrend since late March, currently trading nearly 20% below its year-to-date high.
Here’s Why Oppenheimer Turned Bearish on AT&T Stock
Horan’s downgrade isn’t because of anything AT&T has done wrong recently: It’s a structural decision about where broadband is headed.
The Oppenheimer analyst expects a rapid shift to satellite Internet, with LEO providers picking up more than 2 million subscribers a year.
By the end of this decade, Horan believes they will have a significant 10% share of the fixed broadband market, where AT&T has more exposure than its peers.
Additionally, he sees “strong regulatory support behind satellites, increasing the viability of SpaceX entering mobile directly.”
That said, T shares currently pay a fairly lucrative dividend yield of 4.72%, keeping them attractive to income-focused investors.
What Else Could Drive T Stock Down in 2026?
Oppenheimer turned dovish on AT&T stock because he expects the company’s fiber penetration to also disappoint, potentially stopping at 50 million homes instead of the 60 million he had projected by 2030.
This gap is hugely important for long-term revenue growth, its analyst told clients. According to Timothy Horan, as satellite prices converge with those of conventional broadband, the economic case for continued fiber expansion deteriorates.
In fact, within three years, new fiber construction will stop industry-wide, affecting the entire supply chain, he added.
SpaceX’s incoming listing only amplifies the narrative risk: Once SPCX goes public and Starlink’s financials become fully public, institutional investors will have a clearer lens through which to measure the satellite threat, and AT&T may not like how that comparison looks.
