Goldman Cuts Wireless Sector Outlook
Goldman Sachs cut its outlook on the U.S. wireless sector to market underweight. Goldman also downgraded AT&T Wireless (AWE ) Sprint PCS (PCS ) and Nextel (NXTL ).
Analyst Paul Wuh says while he has been saying that wireless stock performance during the first half of 2002 would be challenging, the fundamental investment thesis for the year had been predicated on improving industry dynamics and the introduction of new technologies and applications during the second half of 2002. Given AT&T Wireless's recent negative statements -- from which no U.S. carrier will be immune -- and the weaker outlook for wireless data after the recent GSM Congress in Cannes, Wuh says he's now more skeptical about improving fundamentals during the second half.