Gold prices bounce off 3-week lows; demand likely longer term
On Tuesday, Citi analysts maintained their Buy rating for Verizon Communications stock (NYSE: VZ) with a price target of $48.00. The decision follows an update to the Verizon model, incorporating new information from the company’s 10-Q filing and recent management commentary. The telecommunications giant, with a market capitalization of $186 billion and a P/E ratio of 10.46, currently offers an attractive dividend yield of 6.15%. InvestingPro analysis indicates the stock is trading near its Fair Value, with additional metrics and insights available to subscribers.
Verizon management highlighted a continuation of double-digit consumer gross add growth into May, contrary to prior expectations of a slowdown. The increased activity in the switcher pool is attributed to price actions from all three national carriers, elevated promotions, and potential value shopping by consumers, which has led to incremental churn. With trailing twelve-month revenue of $135.29 billion and a GOOD financial health score according to InvestingPro, the company maintains a strong market position.
Despite these factors, the analysts’ outlook on net additions and losses remains unchanged. The report also noted that buyout offers have fluctuated in the market, with Verizon and AT&T currently pulling back, while T-Mobile may have reverted to requiring a device trade-in.
Citi analysts expressed some optimism regarding these developments, reaffirming their Buy rating on Verizon stock.
In other recent news, Verizon Communications Inc (NYSE:VZ). has announced a $5 billion investment plan aimed at supporting American small business suppliers through its Small Business Supplier Accelerator initiative. This plan is designed to integrate more small businesses into Verizon’s supply chain, offering tools and training to enhance their capabilities. Additionally, Verizon’s Small Business Digital Ready program is launching a new grant cycle, providing $10,000 grants to eligible small businesses. Meanwhile, Verizon’s recent annual shareholders’ meeting saw the re-election of all ten board members and the approval of executive compensation and the appointment of Ernst & Young LLP as the independent accounting firm for 2025. However, three shareholder proposals, including those on climate lobbying and advertising discrimination, were defeated.
Analyst firms have weighed in on Verizon’s performance, with KeyBanc maintaining a Sector Weight rating while highlighting mixed results for the first quarter of 2025. KeyBanc raised its adjusted EBITDA forecast for 2025 but lowered it for 2026, citing concerns over competitive challenges and potential churn. Bernstein also maintained a Market Perform rating with a $46 price target, noting significant consumer postpaid phone net losses due to competitive pressures. Despite these challenges, Verizon is holding steady on its full-year service revenue growth forecast of 2% to 2.8%. These developments reflect Verizon’s strategic efforts to navigate a competitive telecom landscape and drive growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.