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Credit Suisse downgrades AT&T, Verizon
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Credit Suisse analyst Christopher Larsen downgraded his price targets for both AT&T and Verizon Communications, lowering his target for AT&T to $39 from $49, and Verizon to $40 from $52. He also downgraded the entire telecom sector. He cited both companies' moves this week toward flat-rate wireless plans as part of the reasoning, but also noted that overall, broadband adoption is slowing and many telecom companies are facing uncertain economic forecasts.
The slowing of broadband growth has become a major point of concern since the middle of last year. Some analysts now expect broadband subscribers for telco and cable TV companies to grow 20% less in 2008 than in 2007.
For more:
- check out this Associated Press story at The Houston Chronicle
- see this Investor's Business Daily story at CNN Money
Related articles:
- Independent telco CenturyTel recently issued its own tempered outlook
Comments
Posted by CT Swaminathan | April 10, 2008 - 6:47am
I agree with John Holland on this, the analysis does not consider the growth of mobile broadband. Christopher Larsen downgrading AT&T and Verizon against the entire telecom sector is incorrect. Infact the broadband will grow higher by 10% compared to last year.
Posted by John Holland | February 21, 2008 - 3:00am
It would be interesting to understand if Christopher Larsen took a holistic approach to his analysis. I could be wrong but it would seem from the article that it only encompasses the fixed/cable broadband sector which is only a part of the picture. Late 2006-early 2007 is when mobile broadband started to take off and has shown no signs of slowing down. Could this be the reason for some slowing in the fixed sector in the US? It certainly is having that impact in Europe. Might be a bit premature to say broadband growth is slowing, if anything it is likely to be accelerating as it becomes more personal and accessible through vastly improved mobile devices and high speed networks.
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