Verizon Analyst Remains On Sidelines Citing Lack Of Solid Catalyst - Verizon Communications (NYSE:VZ)

Morgan Stanley analyst Simon Flannery highlights that Verizon Communications Inc's VZ (reiterated Equal Weight, price target $58) stock has fallen 15% this year and is now trading at a stock price not seen since 2017.
He notes that the dividend yield now stands at 5.8%, suitable for #10 in the S&P 500.
Simon points out that capex will likely peak this year and drop 25% or $5.5 billion over the next two years.
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He adds that this should help the company delever and move closer to the 2.25x unsecured leverage level where buybacks may kick in.
While he thinks the stock is inexpensive, he remains on the sidelines as he does not see a solid catalyst to drive a re-rating in the near term.
Simon also notes that the company cut guidance in Q1 and again in Q2, driving the stock lower.
Simon will focus if there will be a reiteration of 2022 guidance with 3Q22 earnings and whether Verizon can improve gross and net adds trends and better visibility into 2023/24+.
Macro still matters, and so does potential buyback.
Price Action: VZ shares traded higher by 0.23% at $43.56 on the last check Wednesday.