Optimistic 12-Month Outlook for Verizon Amid Competitive Challenges Justifies Buy Rating

In a report released yesterday, Michael Rollins from Citi maintained a Buy rating on Verizon (VZ – Research Report), with a price target of $48.00.

Michael Rollins has given his Buy rating due to a combination of factors that suggest Verizon’s potential for financial growth despite current competitive challenges. While the wireless market competition is expected to impact Verizon’s financials in the short term, Rollins anticipates that Verizon will still meet its financial targets for 2025. This optimism is supported by Verizon’s ability to maintain strong Fixed Wireless Access (FWA) and FiOS volumes, as well as its strategic focus on converged promotions.
Rollins also highlights that Verizon’s postpaid phone sales momentum is encouraging, even though there is an expected increase in churn. The company’s efforts to offset higher churn with stronger gross add growth are seen as positive. Furthermore, Verizon’s financial metrics such as EBITDA and Free Cash Flow (FCF) are expected to align closely with market consensus, and the company’s pricing actions are likely to benefit its Average Revenue Per User (ARPU) and premium plan uptake. These factors contribute to Rollins’s optimistic 12-month outlook for Verizon, justifying the Buy rating.

According to TipRanks, Rollins is a 5-star analyst with an average return of 12.4% and a 68.23% success rate. Rollins covers the Communication Services sector, focusing on stocks such as T Mobile US, Verizon, and AT&T.