Verizon Maintained Outperform Rating as Analyst Predicts Strong FCF Growth

Oppenheimer analyst Timothy Horan continues to recommend Verizon Communications Inc. (VZ) with an Outperform rating and a $48 price target. Horan highlights the company’s positive momentum driven by network upgrades, refreshed management, and improved go-to-market strategy. Verizon’s first-quarter results were impacted by January price increases affecting volumes. However, one-time expenses also contributed to the results, setting the stage for solid free cash flow (FCF) growth. Horan believes Verizon’s ARPA growth of 3.9% will continue, driven by pricing and the expansion of recurring revenue streams. While subscriber growth remains a priority, Horan expects tougher year-on-year comparisons in the second half. Despite trimming revenue estimates, Horan maintains his FCF estimates for 2024 and 2025. Verizon’s stock has gained 8% in the past 12 months and is available through ETFs such as DJD and FDL.

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