Sprint Shares Tumble; T, VZ Also Drop.
"Earlier this morning, Moffett had cut his price targets for Sprint, Verizon (VZ) and AT&T (T), all of which he rates Market Perform. His targets go to $14 from $18 on Sprint, $41 from $44 for Verizon, and $44 from $47 for AT&T. His issue: the stocks look vulnerable to an economic downturn. He says the stocks are not the defensive issues they once were. The issue, he says, is their ability to continue to growth the wireless business. 'With penetration at 80%, the economics of newcomers to the wireless industry in 2008 are already challenging - recession or not,' he writes. 'And history suggests that the wireless industry is susceptible to a significant growth shock.'"