Verizon Communications downgraded as upside now limited - Barclays

Published 31/01/2024, 14:18
© Reuters.
VZ
-

Verizon Communications (NYSE:VZ) was cut to Equal Weight from Overweight at Barclays on Wednesday, with the bank maintaining its $44 per share price target for the stock.

Analysts at Barclays told investors in a note that the company's valuation is now more fairly aligned with trend improvements.

"Verizon is on a much better operational trajectory than has been the case over the last couple of years, but upside to numbers and valuation may be more limited from present levels," the analysts noted.

The analysts believe Verizon's revenue growth needs more balance.

"This will be the third year of significant price increases by Verizon and given that a significant part of the base has absorbed some level of price increases between 2022-2024, it may be difficult to continue using this lever to the same extent next year, without more material churn trade-offs," they explained.

Overall, Barclays views Verizon as currently fairly priced.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.