VZ - Verizon's Guidance Surprise - Analysts Boost Forecast | Benzinga
Keybanc analyst Brandon Nispel maintained Verizon Communications Inc (NYSE:VZ) with an Overweight and raised the price target from $45 to $46.
The analyst said that the fourth quarter results were mixed, with wireless service revenue of +3.2% below his consensus of +3.5% on lower ARPU offset by higher postpaid phone net adds.
The adjusted EBITDA growth of -0.6% missed estimates, driven by VCG, though it aligned with Nispel’s estimates.
The analyst noted that free cash flow was ahead due to a lower-than-expected capex.
Also, 2024 guidance generally came in line, highlighting accelerating service revenue, accelerating adjusted EBITDA growth, and messaging for VCG to return to positive postpaid phone net adds, all of which he found encouraging.
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Nispel noted a stable Wireless competitive environment, improving Verizon postpaid phone net adds, strong VCG broadband net adds, and Verizon’s high-quality cash flow can drive shares.
Oppenheimer analyst Timothy Horan had an Outperform rating on the stock and raised the price target from $43 to $48.
The ...