Verizon Communications Inc VZ remains one of the highest-quality providers in wireless and should be on “stable footing” as 5G opportunities begin to crystalize, according to JPMorgan.
The Analyst
JPMorgan's Philip Cusick upgraded Verizon from Neutral to Overweight and maintained a $58 price target.
The Thesis
Verizon’s organic growth approach to wireless has given the company an “increasingly stable footing," Cusick said in a Friday note.
The company remains strong in the overall wireless landscape, as competitor AT&T Inc T has been less promotional and has shifted its focus to strategic and cash flow issues given the market’s reaction to its margin weakness, the analyst said.
“VZ seems to be the one carrier that is heads down, executing on the business and could see its share improve commensurately," Cusick said.
While JPMorgan does not see 5G opportunities as a “real game changer” in the near term, Verizon will have potential mobility in this arena over the next few years, Cusick said.
In the short term, the company will focus on the potential for a fixed broadband offering to drive cash flow on 5G investment, CEO Lowell McAdam told Cusick.
Price Action
Verizon shares were up more than 3 percent at $48.63 at the time of publication Friday.
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