Verizon’s Strategic Expansion and Customer Retention Drive Buy Rating

Analyst Michael Rollins of Citi maintained a Buy rating on Verizon (VZ – Research Report), retaining the price target of $48.00.

Michael Rollins has given his Buy rating due to a combination of factors, including Verizon’s strategic focus on expanding its leadership in broadband and converged services. The company aims to double its converged subscriptions over the next three years, which is expected to enhance its market position and financial performance. Additionally, Verizon’s management is optimistic about improving customer retention and reducing churn rates, which are critical for maintaining a stable revenue base.
Moreover, while the upcoming second-quarter earnings may not be a significant catalyst, the third quarter is anticipated to be more pivotal for investor sentiment. Verizon’s proactive retention strategies, such as offering free BYOD lines to high-risk customers, along with its financial prospects, are expected to support multiple expansion over the next year. The company’s efforts to refine its value proposition and expand its appeal across various customer segments further bolster the positive outlook, making it a compelling buy for investors.