Verizon: Strengthened Fiber Strategy, Cost Efficiencies, and Capital Discipline Underpin Buy Rating and Upgraded Price Target

TD Cowen analyst Gregory Williams reiterated a Buy rating on Verizon yesterday and set a price target of $54.00.

Gregory Williams has given his Buy rating due to a combination of factors that underscore Verizon’s ability to grow while maintaining strong financial discipline. He highlights that, despite short‑term EBITDA pressure from spending to acquire more high-value phone customers, Verizon’s 2026 outlook points to a company capable of expanding its postpaid phone base, growing earnings, and still investing in its network. The raised phone-add targets, coupled with meaningful cost-savings initiatives and efficiency gains in both operating and capital spending, support a view that Verizon can simultaneously fund growth and protect margins. Williams also points to the benefits from Verizon’s fiber strategy and the enhanced synergy expectations from its Frontier-related initiatives, which are expected to drive incremental EBITDA and free cash flow over the coming years.
In addition, Williams emphasizes that Verizon’s medium-term capital plan remains disciplined, with capex set to decline even as the company expands fiber passings, supporting improved cash generation. The outlined EPS and EBITDA growth targets for 2026 exceed prior market expectations, reinforcing his conviction that the “new” Verizon is structurally stronger than the market is pricing in. He also views the planned dividend increase and sizable share repurchase program as clear evidence of management’s confidence in Verizon’s cash-flow durability and balance-sheet strength. Taken together, these factors lead Williams to believe that Verizon’s shares offer an attractive risk/reward profile, warranting his Buy rating and an increased price target.

In another report released on January 31, TipRanks – xAI also upgraded the stock to a Buy with a $49.00 price target.