Telecom Giant Verizon Eyes Tower Sell-Off To Monetize Asset

Verizon Communications Inc VZ is reportedly considering a significant move to sell thousands of mobile phone towers across the U.S.

Verizon has engaged advisors to assess potential buyers’ interest in a package comprising approximately 5,000 to 6,000 towers. A possible sale could yield over $3 billion, Bloomberg cites familiar sources, although discussions are in the early stages and do not guarantee a transaction.

Also Read: Verizon And AT&T Clash Over $14B FirstNet Spectrum Proposal

In 2015, Verizon offloaded lease and operational rights for about 11,000 towers to American Tower Corp AMT for an upfront payment of $5 billion. This deal helped Verizon raise funds for airwave purchases and debt reduction, according to Bloomberg.

The current batch of towers will likely attract interest from infrastructure companies and strategic investors. Major telecom firms often leverage their mobile phone tower assets to generate cash.

Goldman Sachs analyst views the U.S. telecom sector optimistically, emphasizing the transformation underway among wireless carriers and data centers.

Verizon stands out in Schneider’s analysis for its strengthening wireless operations and promising prospects in fixed wireless for both consumer and business segments.

Investors tracking developments can consider exposure through Vanguard Telecommunication Services ETF VOX and iShares U.S. Telecommunications ETF IYZ.

Verizon Stock Prediction For 2024

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Verizon Communications, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Verizon Communications, the 200-day moving average sits at $38.68, according to Benzinga Pro, which is below the current price of $40.79. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

Price Action: VZ stock traded higher by 0.27% at $40.90 premarket at the last check on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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