Analyst Benjamin Swinburne of Morgan Stanley maintained a Hold rating on Verizon, boosting the price target to $48.00.
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Benjamin Swinburne has given his Hold rating due to a combination of factors impacting Verizon’s stock. The company’s shares are trading at a discount compared to its peers, which reflects a less optimistic growth outlook. Although the recent quarterly results and updated outlook were positive, indicating healthy financial growth and a significant boost to free cash flow from tax reforms, there are challenges ahead.
Verizon’s performance in wireless net additions is mixed, and the forecast for 2025 suggests a more challenging environment than initially anticipated. The expectation of flat postpaid consumer phone customers and an increase in monthly postpaid phone churn in the latter half of 2025 contribute to a cautious stance. Despite raising free cash flow estimates due to unexpected tax benefits, the competitive wireless market and elevated churn rates lead to a Hold rating, as Verizon continues to focus on profitable growth.