J.P. Morgan analyst Sebastiano C Petti has set out his preferred cable, satellite and telecom services stocks for September, keeping AT&T atop the list and elevating conviction in Anterix and T-Mobile. The rankings reflect J.P. Morgan’s evaluation of growth trajectories, relative valuation and the near-term operational picture across the sector.
AT&T - Overweight, 10 points (unchanged)
AT&T retains the firm’s highest rating, driven by what J.P. Morgan describes as a productive fiber build engine and a converged product strategy that is gaining scale. The bank reports a convergence rate of 42.5% when including Lumen and 45% when excluding Lumen. That convergence progress, combined with new pricing and packaging aimed at underpenetrated segments - notably value-focused cohorts - underpins the bullish stance.
On specific volume and revenue assumptions, J.P. Morgan raised its forecast for 2026 postpaid phone additions to 1.60 million, and now expects AT&T Fiber net additions of 1.35 million. The analyst firm notes second-quarter wireless service revenue grew 3.3% year-over-year, and it has modeled full-year wireless service revenue growth of 3.3% - above the company’s own 2-3% guidance range.
J.P. Morgan highlights first-half 2026 ACS EBITDA growth of roughly 7% against a 6% guidance point, suggesting that the company’s consolidated EBITDA guidance of 3-4% for the year may be conservative. Based on these dynamics, the firm models a 4% EBITDA compound annual growth rate and a 10% earnings per share compound annual growth rate through 2028.
Recent company developments bolster the firm’s view: AT&T reported second-quarter adjusted earnings of $0.65 per share, beating analyst estimates. The company also expanded an agreement with D-Wave Quantum to deploy quantum computing capabilities, and Wolfe Research upgraded the stock to Outperform.
Anterix - Overweight, 9 points (up 3 points)
Anterix is listed among J.P. Morgan’s higher-conviction ideas, with the bank reiterating an Overweight rating and maintaining a December 2027 price target of $130. That target is derived using a valuation of $0.75 per megahertz per population - a discount to prior contracts that averaged $1.40 per megahertz per population.
J.P. Morgan’s bullish case rests on expanding demand for low-band spectrum. The firm says interest now reaches beyond traditional investor-owned utilities to include critical infrastructure customers and satellite operators. Approximately 85% of Anterix’s spectrum holdings remain uncommitted and are concentrated in the top-20 metropolitan areas, giving the company optionality as demand firms.
Despite fairly strong year-to-date share price appreciation, J.P. Morgan judges the stock still attractively valued on its spectrum opportunity and market positioning. In quarterly results, Anterix reported fiscal first-quarter earnings of $0.01 per share and revenue of $1.9 million, both ahead of analyst expectations.
T-Mobile - Overweight, 9 points (up 1 point)
J.P. Morgan views the recent decline in T-Mobile shares as an appealing buying opportunity. The bank notes the stock fell 5.5% following second-quarter results but continues to rate the company as a top pick due to its relative valuation and what the firm calls industry-leading growth metrics.
J.P. Morgan projects roughly 8% core EBITDA compound annual growth and an 11% free cash flow per share compound annual growth rate through 2028. While T-Mobile guided to third-quarter postpaid account net additions of 250,000, the bank models a modest upside and forecasts 260,000 additions for the quarter.
The company’s management has downplayed competitive risk from satellite entrants, with T-Mobile’s leadership stating the threat from satellite companies is overstated. J.P. Morgan notes that Bank of America has separately observed that SpaceX’s wireless plans could potentially benefit T-Mobile, reflecting differing viewpoints on the competitive landscape.
Summary analysis
Across the three highlighted names, J.P. Morgan emphasizes execution - from AT&T’s fiber build and convergence progress to Anterix’s spectrum inventory and T-Mobile’s subscriber momentum. The firm’s forecasts tie subscriber and fiber net-add assumptions directly to revenue and EBITDA modeling, and the ratings imply confidence in near-term operational momentum translating into measurable financial gains.
Key points
- AT&T remains the top pick due to fiber expansion, an improving convergence rate and upgraded subscriber and revenue assumptions.
- Anterix is highlighted for its uncommitted low-band spectrum concentrated in top metros and a valuation framed as discounted versus prior deal pricing.
- T-Mobile is viewed as a buying opportunity after a price pullback, with J.P. Morgan modeling continued EBITDA and free cash flow per share growth through 2028.
Risks and uncertainties
- Execution risk on network buildouts and convergence - sector: telecommunications and broadband infrastructure.
- Uncertainty around spectrum monetization timing and counterparties for Anterix - sector: wireless spectrum and critical infrastructure customers.
- Competitive dynamics with satellite entrants - sector: wireless services, where perceived threats or synergies (as noted by different firms) could affect market outcomes.
Where the source material provides limited detail on timing or contract counterparties, this article reflects those limitations rather than extending beyond the available information.