On Tuesday, Oppenheimer has maintained its Outperform rating on Verizon Communications (NYSE:VZ) with a steady price target of $48.00. The firm acknowledges Verizon's continued progress, building on a strong foundation laid in 2023. This advancement is attributed to significant network upgrades, a revitalized management team, and enhanced market strategies.
Despite some clutter in the results due to price increases initiated in January, which likely affected sales volumes along with one-time expenses, Oppenheimer sees this as positioning Verizon for robust future free cash flow growth. The company managed to slightly exceed EBITDA expectations by 25 basis points. Although lower upgrade volumes might have restricted this margin, the focus has shifted towards subscriber growth.
Verizon is recognized for being in a more advantageous position compared to two years prior, with solid momentum that is expected to gain further. The telecom giant is also identified as a top dividend stock, offering an appealing yield of approximately 7%.
The firm also points out Verizon's substantial debt level, which stands at $151.7 billion. However, debt reduction is a key priority for the company, with plans to lower it by more than $6 billion annually. Oppenheimer's outlook suggests confidence in Verizon's strategy and financial health moving forward.
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