Tdorsey1776
Sep 24, 5:39 PM
$VZ "I am rating Verizon Communications (VZ) a Buy with a price target of
$57...24% upside potential from
$46. I believe that the market is still pricing the company like a mature teleco with little more than a dividend. While the underlying earnings profile is starting to change. Q2 2026 provided the strongest evidence so far I could think of. Mobility and broadband service revenue increased by 2.8% Y/Y to
$23.4 billion, while adjusted EBITDA increased by 7.2% to a record
$13.7 billion. On the other hand, adjusted EPS increased by 6.6% to
$1.30....the first-half free cash flow [FCF] also increased to
$10.2 billion from
$8.8 billion a year ago. This gave management enough confidence to raise full-year guidance again. VZ now expects mobility and broadband service revenue growth of between 2.5% and 3%, adjusted EPS growth of 6% to 7%, and FCF growth of between 9% and 10%. Postpaid phone additions are also expected to finish in the upper half of management's 750K to 1 million range."
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