Credit Suisse downgrades AT&T, Verizon

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

Suggested Articles

While some would argue that NFV doesn't deserve a third, fourth or fifth chance, MEF has thrown its support behind Lean NFV.

HPE has put the finishing touches on its $925 million deal to buy SD-WAN vendor Silver Peak, which narrows the gap on rivals such as Cisco and VMware.

AT&T and Akamai announced on Tuesday that they have extended their business partnership through 2023.