AT&T (T) shares are under significant pressure on June 3 after Oppenheimer analyst Timothy Horan downgraded them to “Perform” and stripped the price target entirely.
In his research note, Horan issued a sweeping warning that satellite broadband is no longer a distant threat for AT&T now that SpaceX is set to debut on Nasdaq next week.
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His bearish call concerns that AT&T stock has 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 rooted in anything AT&T has done wrong recently — it’s a structural call on where broadband is heading.
The Oppenheimer analyst expects a rapid switch to satellite internet, with LEO providers capturing more than 2 million subscribers annually.
By the end of this decade, Horan believes they will command a meaningful 10% share of the fixed broadband market, where AT&T carries more exposure than its peers.
Moreover, he sees “strong regulatory support behind satellites, increasing the feasibility for SpaceX to directly enter mobile.”
That said, T shares currently pay a rather lucrative 4.72% dividend yield that keeps them attractive for income-focused investors.
What Else Could Drive T Shares Lower in 2026?
Oppenheimer turned dovish on AT&T shares because it expects the company’s fiber penetration to disappoint as well, potentially stopping at 50 million households instead of 60 million it had projected by 2030.
This gap matters enormously for long-term revenue growth, its analyst told clients. According to Timothy Horan, as satellite pricing converges with conventional broadband, the economic case for continued fiber expansion deteriorates.
In fact, within three years, new fiber builds across the industry will halt — hitting the entire supply chain, he added.
The incoming SpaceX listing only amplifies the narrative risk: once SPCX begins trading, and Starlink’s financials become fully public, institutional investors will have a cleaner lens through which to measure the satellite threat — and AT&T may not like what that comparison looks like.
