Verizon, AT&T: J.P. Morgan Sees Trouble In Wireless
For many quarters now, telco giants Verizon (VZ) and AT&T (T) have suffered sharp declines in the residential wireline business, but have been bailed out the by rapid growth of their wireless businesses. But J.P. Morgan analyst Mike McCormack this morning warns that fundamentals in wireless are now deteriorating. As a result, he downgraded both stocks today to Neutral from Overweight. McCormack cut his target to $28 from $30 for AT&T; for Verizon he goes to $32, from $36.