KeyBanc Reiterates Overweight Rating on Verizon Communications (VZ)

KeyBanc analyst Brandon Nispel reiterated an Overweight rating and $46.00 price target on Verizon Communications (NYSE: VZ).

The analyst commented, "We remain Overweight VZ and tweak estimates following 1Q results that were in line and 2024 guidance that was maintained. While bears will likely pick on the benefit from "Second Number," and the potential 50 bps risk to Wireless Service revenue, they miss: 1) meaningful improvement in churn, despite price increases, which resulted in better APRA; and 2) subscriber momentum characterized as exiting 1Q at an improving pace and continuing into 2Q. We think this pullback creates an opportunity to add to positions, with our thesis of: 1) improving VCG postpaid phone net adds; 2) strong Broadband subscriber growth; 3) accelerating adj. EBITDA; and 4) continued strong FCF very much intact. We maintain our price target of $46, which represents 6.9x our 2025 adj. EBITDA estimates vs. the three- and 10-year averages of 6.9x and 6.8x, respectively."

For an analyst ratings summary and ratings history on Verizon Communications click here. For more ratings news on Verizon Communications click here.

Shares of Verizon Communications closed at $38.60 yesterday.

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