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.