Why This Verizon Communications Analyst Is Turning Bullish

Shares of Verizon Communications Inc. VZ Thursday reversed a downward trend in place since the beginning of this week.

While the stock is trading at a historically attractive valuation, the company has room to improve its operational performance in 2023, according to Morgan Stanley.

The Verizon Communications Analyst: Simon Flannery upgraded Verizon Communications from Equal-Weight to Overweight while raising the price target from $41 to $44.

The Verizon Communications Takeaways: While the stock valuation reflects “an overly negative relative outlook,” there are signs of trends gradually improving, Flannery said in the upgrade note.

Check out other analyst stock ratings.

“We think its asset mix should prove defensive in a slowing macro environment given the essential nature of the services and the recurring revenue model,” the analyst said. 

“Verizon’s wireless trends are showing some signs of improvement with a recent recovery in gross add momentum and the benefits of targeted price increases, while pricing-driven churn should moderate,” he added.

The company’s free cash flows are likely to ramp as “5G capex program winds down,” Flannery said. 

VZ Action: Shares of Verizon Communications had risen by 1.42% to $37.98 Thursday morning. 

Photo via Shutterstock. 

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Posted In: Analyst ColorUpgradesPrice TargetTop StoriesAnalyst RatingsMorgan StanleySimon Flannery
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