For many quarters now, telco giants Verizon (VZ) and AT&T (T) have suffered sharp declines in the residential wireline business, but have been bailed out the by rapid growth of their wireless businesses. But J.P. Morgan analyst Mike McCormack this morning warns that fundamentals in wireless are now deteriorating. As a result, he downgraded both stocks today to Neutral from Overweight. McCormack cut his target to $28 from $30 for AT&T; for Verizon he goes to $32, from $36.

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Clearwire shares are down sharply following negative comments on the company this morning from analysts at J.P. Morgan and Stanford Group.

The company’s shares gained ground yesterday following the completion of its deal to acquire Sprint’s (S) Xohm wireless broadband business; it also closed a $3.2 billion investment from Google (GOOG), Comcast (CMCSA), Time Warner Cable (TWX), Intel (INTC) and others. But there are concerns that the company still faces daunting challenges, including a highly competitive market and a need for substantially more capital.

J.P. Morgan’s Mike McCormack resumed coverage with a Neutral rating, from Overweight previously. That’s an eye-opening change, given that Morgan was one of Clearwire’s advisers on the Sprint deal. He has a $6 price target on the stock.

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