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Investing.com - RBC Capital has raised its price target on Verizon Communications (NYSE:VZ) to $46.00 from $45.00 while maintaining a Sector Perform rating on the telecommunications company. According to InvestingPro data, Verizon, currently trading at $42.86, shows signs of being slightly undervalued based on its Fair Value analysis.
The adjustment follows Verizon’s latest earnings report, which exceeded financial expectations while meeting consensus projections for wireless subscriber metrics. The company maintains strong fundamentals with $137 billion in revenue and an impressive EBITDA of $49.9 billion over the last twelve months.
Verizon management has increased its 2025 financial guidance at the mid-points, raising EBITDA projections by 0.25%, EPS by 0.5%, and free cash flow by 11% (representing a $2 billion increase) due to anticipated tax benefits.
The company has shifted its focus somewhat, with management now placing less emphasis on year-over-year growth in consumer postpaid phone net additions and greater emphasis on maintaining discipline while growing service revenues and EBITDA.
RBC Capital has reduced its net additions estimates for Verizon but acknowledged the company’s improved cost efficiencies in its updated analysis.
In other recent news, Verizon Communications Inc. reported better-than-expected earnings for the second quarter of 2025. The company achieved an adjusted earnings per share (EPS) of $1.22, surpassing the forecast of $1.19. Revenue also exceeded expectations, reaching $34.5 billion compared to the projected $33.71 billion. In response to these results, UBS maintained a Neutral rating on Verizon, highlighting mixed performance with in-line service revenues and improved profits, although churn rates increased. KeyBanc Capital Markets also maintained its Sector Weight rating, noting more negatives than positives in the second-quarter results. JPMorgan raised its price target for Verizon to $49.00, citing the company’s focus on profitability over subscriber growth. Meanwhile, Goldman Sachs reiterated its Buy rating, maintaining a $52.00 price target, and noted the company’s solid financial metrics and raised guidance for 2025 EBITDA and free cash flow. These developments reflect Verizon’s strategic focus on financial priorities amidst a competitive landscape.
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