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Investing.com - Goldman Sachs has reiterated its Buy rating on Verizon Communications (NYSE:VZ) stock, maintaining its price target of $52.00. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with a current market capitalization of $181.4 billion.
The firm noted that Verizon’s stock rose 4% following solid headline financial metrics in its latest quarterly report, which included 2025 guidance raises for EBITDA and free cash flow. The company’s strong performance is reflected in its impressive EBITDA of $49.3 billion and an attractive dividend yield of 6.64%, making it a notable income stock.
Goldman Sachs indicated that wireless trends were better than feared, despite management not reiterating prior guidance for improving net addition metrics, and suggested the stock could outperform in the short term as investors had been negatively positioned due to slower growth expectations.
The research firm highlighted Verizon’s strong financial results in EBITDA and free cash flow as encouraging signs that the company can deliver profitability upside despite an elevated wireless churn and subsidy environment, though it acknowledged the wireless environment remains competitive and the broadband market appears relatively weak.
Goldman Sachs also pointed to substantial improvement in Verizon’s Business segment performance, which it believes should contribute to steadier financial growth and more financial flexibility going forward. With a solid financial health score of "GOOD" from InvestingPro and low volatility (Beta 0.37), Verizon demonstrates strong fundamentals for long-term investors.
In other recent news, Verizon Communications Inc. reported strong financial results for the second quarter of 2025. The company surpassed expectations with an adjusted earnings per share (EPS) of $1.22, exceeding the forecasted $1.19, and achieved a revenue of $34.5 billion, which was higher than the projected $33.71 billion. Verizon has raised its full-year guidance for adjusted EBITDA and EPS growth, signaling confidence in its financial outlook. The company is also expanding its AI and fixed wireless solutions, which contributed to its robust performance. Additionally, Verizon is making strategic moves with the pending acquisition of Frontier, expected to enhance its fiber strategy. Analyst firms have noted these developments, with some highlighting Verizon’s strategic execution in a competitive market. The company has demonstrated strong operational execution, continuing to surpass analyst estimates and reflecting a positive trend in its financial health.
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