Wireless stocks are better positioned than cable operators as Starlink's broadband expansion is expected to weigh more heavily on cable providers than wireless carriers, Morgan Stanley said in a research note Tuesday.

The investment firm said that cable broadband has faced ongoing pressure and cited Comcast (CMCSA) and Charter Communications (CHTR) losing about 500,000 broadband subscribers annually.

Morgan Stanley lowered its broadband forecasts for both companies and expects annual subscriber losses of about 400,000 to 500,000 to account for an estimated 16 million Starlink broadband subscribers by 2030.

The investment firm said fiber offerings from AT&T (T) and Verizon (VZ) should hold their own because of their strong speeds and relative value. It also reiterated T-Mobile US (TMUS) as its top pick. It said the perceived risk of Starlink disrupting the US wireless market over the next one to two years is greater than the actual risk.

Morgan Stanley lowered its price target on T-Mobile US to $230 from $260, on AT&T to $25 from $30, and on Comcast to $30 from $33, citing lower long-term estimates and more conservative valuation multiples.

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