AT&T Remains J.P. Morgan's Top Telecom Pick for September

J.P. Morgan has released its September rankings for the cable, satellite, and telecom services sectors, keeping AT&T (NYSE: T) in its top position. The firm's analysis, led by analyst Sebastiano C Petti, highlighted the company's strong operational momentum and growth outlook, while also upgrading the rankings for Anterix and T-Mobile.

AT&T Leads on Fiber and Wireless Momentum

AT&T's position as J.P. Morgan's top pick is supported by its successful fiber network expansion and its "scaling convergence strategy," which integrates wireless and broadband services. According to the firm, this strategy has reached a 42.5% convergence rate.

J.P. Morgan noted that AT&T's full-year consolidated EBITDA guidance of 3-4% growth appears conservative, given strong first-half performance. The investment bank raised its own forecasts for the company, projecting:

• Full-year wireless service revenue growth: 3.3%, which is above AT&T's guidance range of 2-3%.
• 2026 postpaid phone additions: 1.60 million.
• Compound Annual Growth Rates (CAGR) through 2028: 4% for EBITDA and 10% for earnings per share (EPS).

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Anterix and T-Mobile Offer Value

J.P. Morgan identified Anterix (NASDAQ: ATEX) as one of its "higher-conviction ideas," citing broadening demand for the company's low-band spectrum from critical infrastructure and satellite players. The firm reiterated its Overweight rating and a December 2027 price target of $130, noting that approximately 85% of Anterix's spectrum in top metro areas remains uncommitted.

T-Mobile (NASDAQ: TMUS) was also highlighted as an attractive opportunity, with J.P. Morgan viewing the stock's recent 5.5% decline since its second-quarter report as a compelling entry point. The bank maintains T-Mobile as a top pick due to its industry-leading growth and relative valuation, forecasting an 8% core EBITDA CAGR and an 11% free cash flow per share CAGR through 2028.