Read Why Raymond James Thinks Verizon As Safe & Simpler

Raymond James analyst Frank Louthan maintained Verizon Communications Inc VZ with an Outperform rating and a $64 price target (26% upside) ahead of its Q2 earnings results.
With a safe dividend yield and low leverage, the analyst believes investors value its consistently simpler story and longstanding network quality, which is expected to remain a focus of differentiation in the coming quarters.
Following recent commentary on the conference circuit and his conversations with management, he made slight adjustments ahead of 2Q22 earnings scheduled for July 22.
Also Read: Read Raymond James' Take On AT&T Ahead Of Its 2Q Results
Specifically, he raised his 2Q22 consumer and commercial wireless services revenue estimates to $15.41 billion and $3.26 billion from $15.36 billion and $3.19 billion, respectively.
Meanwhile, he took 2Q22 consumer wireless retail net adds to (152)K from (3)K and maintained a commercial wireless retail net adds an estimated 177K for 2Q22.
Most of the adjustments came from the pricing action Verizon is taking proactively to offset higher operating costs from inflation.
He believes additional revenue will be used for promotions and marketing over the next year, particularly if competition remains tough.
He does not expect additional pricing actions and believes they intend to hold firm on the promotional activity around wireless.
Price Action: VZ shares traded lower by 0.30% at $50.72 on the last check Thursday.
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Momentum74.63

Growth44.70

Quality55.44

Value40.47

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