Bernstein analyst Laurent Yoon has maintained their neutral stance on VZ stock, giving a Hold rating today.
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Laurent Yoon has given his Hold rating due to a combination of factors influencing Verizon’s current market position. Despite Verizon’s positive performance in the second quarter, marked by a 4% increase in stock price, the telecommunications industry remains highly competitive. Verizon’s subscriber churn and the pressure from aggressive promotions have been notable challenges, although the company has shown a commitment to focusing on profitable growth rather than merely increasing subscriber numbers.
Verizon’s financial guidance for 2025 has been adjusted, with EBITDA and EPS guidance narrowed towards the higher end of the previous range, yet not raised. This adjustment is attributed to factors like accelerated depreciation rather than a fundamental shift in growth drivers. Additionally, while the prepaid segment has shown positive net additions, there is skepticism regarding its long-term growth potential. These elements contribute to the Hold rating, reflecting a cautious outlook amid the competitive landscape.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $48.00 price target.
Based on the recent corporate insider activity of 15 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VZ in relation to earlier this year.