Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com - BofA Securities reinstated coverage on Verizon Communications (NYSE:VZ) with a Neutral rating and a price target of $45.00 on Monday. The telecom giant, currently trading at $43.55 with a market capitalization of $183.6 billion, shows promising fundamentals according to InvestingPro data, with a P/E ratio of 10.3 and a notable dividend yield of 6.2%.
Analyst Mike Funk at BofA Securities noted that Verizon offers "a balanced mix of premium wireless subscriber base, return of capital and fiber strategy." The firm also highlighted that Verizon’s cable MVNO creates a financial hedge against competitive intensity from cable wireless providers. InvestingPro analysis supports this view, revealing strong financial health with an impressive 42-year track record of maintaining dividends. Additional insights and metrics are available in the comprehensive Pro Research Report.
BofA expects Verizon to show less promotional intensity compared to its peers, which it considers financially prudent but potentially risky for consensus net add forecasts.
The upcoming acquisition of Frontier Communications (OTC:FTRCQ) presents a risk to consensus free cash flow forecasts once completed, as BofA views the deal as FCF dilutive.
BofA estimates that reinstatement of bonus depreciation could significantly boost Verizon’s free cash flow, potentially lifting 2026 and 2027 FCF by 17% and 21%, respectively.
In other recent news, Verizon Communications Inc. reported annual revenues of $134.8 billion for 2024, maintaining its position in the telecommunications industry. The company declared a quarterly dividend of 67.75 cents per share, amounting to over $11.2 billion in cash dividends distributed in 2024. Verizon also held its 2025 Annual Meeting of Shareholders, where all board nominees were re-elected, and the executive compensation package was approved. Additionally, Citi analysts reiterated their Buy rating for Verizon stock, citing continued growth in consumer additions and maintaining a price target of $48.00.
Verizon announced a $5 billion investment plan to support U.S. small business suppliers over the next five years, aiming to integrate these businesses into its supply chain. The Small Business Supplier Accelerator initiative includes targeted training and flexible solutions to aid small businesses. Furthermore, Verizon’s Small Business Digital Ready program is launching a new grant cycle, offering $10,000 grants to eligible small businesses. This effort is part of Verizon’s broader strategy to empower local businesses and communities, contributing to economic growth.
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