Market Overview

JPMorgan: Verizon On 'Stable Footing' As 5G Opportunity Crystallizes

Share:
JPMorgan: Verizon On 'Stable Footing' As 5G Opportunity Crystallizes
Related VZ
How The GDPR's Data Portability Rules Could Affect Client Churn
12 Dow 30 Companies With Above-Average Salaries
Bought AT&T After Selling Verizon (Seeking Alpha)

Verizon Communications Inc (NYSE: VZ) remains one of the highest-quality providers in wireless and should be on “stable footing” as 5G opportunities begin to crystalize, according to JPMorgan. 

The Analyst

JPMorgan's Philip Cusick upgraded Verizon from Neutral to Overweight and maintained a $58 price target.

The Thesis

Verizon’s organic growth approach to wireless has given the company an “increasingly stable footing," Cusick said in a Friday note. 

The company remains strong in the overall wireless landscape, as competitor AT&T Inc (NYSE: T) has been less promotional and has shifted its focus to strategic and cash flow issues given the market’s reaction to its margin weakness, the analyst said.

“VZ seems to be the one carrier that is heads down, executing on the business and could see its share improve commensurately," Cusick said. 

While JPMorgan does not see 5G opportunities as a “real game changer” in the near term, Verizon will have potential mobility in this arena over the next few years, Cusick said. 

In the short term, the company will focus on the potential for a fixed broadband offering to drive cash flow on 5G investment, CEO Lowell McAdam told Cusick.

Price Action

Verizon shares were up more than 3 percent at $48.63 at the time of publication Friday. 

Related Links:

Sprint And T-Mobile To Merge In $26 Billion Deal: What You Need To Know

T-Mobile Expansion In Untapped Markets Likely To Generate 'Significant' Cash Flow, Analyst Says

Latest Ratings for VZ

DateFirmActionFromTo
May 2018JP MorganUpgradesNeutralOverweight
Apr 2018SunTrust Robinson HumphreyUpgradesHoldBuy
Apr 2018UBSUpgradesNeutralBuy

View More Analyst Ratings for VZ
View the Latest Analyst Ratings

Posted-In: 5G JPMorgan Philip CusickAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (T + VZ)

View Comments and Join the Discussion!