VZ - Verizon Poised For Growth Strategic Network Upgrades Strong Momentum To Drive Future Success: Analyst | Benzinga
Oppenheimer analyst Timothy Horan maintained Verizon Communications Inc (NYSE:VZ) with an Outperform rating and a $48 price target. The stock is trading higher on Tuesday following Monday’s first-quarter print.
Horan noted Verizon continued to build on strong momentum from 2023, driven by significant network upgrades, refreshed management and improved go-to-market. Results were messy due to January price increases, which he noted impacted volumes, as did one-time expenses, which is a good setup for strong FCF growth.
Also Read: Verizon’s Q1: Flat Revenue, Bump In Free Cash Flow And Stable 2024 Outlook
A 25bps EBITDA beat could have been larger given low upgrade volumes, but as the analyst stated, returning to subscriber growth is prioritized.
Horan said Verizon was much better positioned than two years ago, with solid momentum and trends were set to improve further.
It remains one of his best dividend plays with an attractive ~7% yield. Debt is high at $151.7 billion, but paydown is of focus and should be ...