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

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

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. 

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Latest Ratings for VZ

DateFirmActionFromTo
Oct 2019Initiates Coverage OnMarket Perform
Oct 2019MaintainsBuy
Aug 2019UpgradesPerformOutperform

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

 

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ELMDDougherty & Co.Initiates Coverage On12.0
MRNSCantor FitzgeraldAssumes7.0
MNRLCapital One FinancialInitiates Coverage On23.0
SONVertical GroupUpgrades
UNPMorgan StanleyMaintains136.0
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