Investing.com — Morgan Stanley analysts are bullish on AT&T Inc (NYSE:T) and T-Mobile US Inc (NASDAQ:TMUS), rating both stocks as “overweight” for growth potential in fiber and wireless services, respectively.
“We believe the structure of the U.S. wireless industry currently supports growth, while broadband competition is likely to increase,” one analyst wrote.
AT&T, formerly equal-weight, was named a top pick in the telecom and cable industries. 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.
According to Brokerage, T-Mobile shares have been strong performers for years, but the tailwinds from brand, customer service and network leadership, combined with the lack of headwinds from legacy revenue streams, support industry-leading growth ahead.
Morgan Stanley expressed caution on the broader cable segment, maintaining an “equal weight” rating on Charter and Liberty Broadband (NASDAQ:LBRDA), and an “underweight” rating on Sirius XM (NASDAQ:SIRI).
The note also highlighted a cautious credit outlook, recommending select bonds in Charter and EchoStar.
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