Wolfe Research analysts upgraded Verizon Communications (NYSE:VZ) to Outperform from Peer Perform, expressing optimism for the industry and presenting a bullish case.
Analysts note that the industry outlook appears positive, with affordable subscriber-winning promotions and increased interest in phone upgrades.
Verizon stock gained 0.7% yesterday after KeyBanc analysts also hiked the rating. Shares are up a further 0.9% in today’s pre-market session.
Verizon's attractiveness is attributed to an established deleveraging trend, signs of improving execution, and the fact that 67% of its revenue comes from growing businesses.
This positive assessment aligns with the industry's overall optimistic outlook, suggesting favorable conditions for Verizon to capitalize on subscriber growth and market dynamics.
“The case for VZ includes orderly industry segmentation, KPI improvement, falling capex, falling leverage. Multiple more likely up than down. A glass half full that's gaining water,” analysts said.
Analysts have a $46 per share price target on VZ stock.