B of A Securities upgrades Verizon to Neutral with new PT of $49.

B of A Securities upgrades Verizon to Neutral with new PT of $49.

Bank of America Securities has upgraded Verizon Communications (NYSE: VZ) to Neutral with a new price target of $49, following the telecommunications giant's strong second-quarter earnings report and raised guidance. The upgrade comes as Verizon continues to demonstrate resilience in the face of a competitive landscape and regulatory pressures.

Verizon reported non-GAAP adjusted earnings per share (EPS) of $1.22 on sales of $34.5 billion, surpassing analyst expectations of $1.19 per share on $33.79 billion in revenue. The company's wireless service revenue reached $20.9 billion, an industry-leading figure for the period. Equipment revenue soared by approximately 25% to $6.3 billion compared to the previous year, and the company ended the quarter with 12.9 million broadband connections, translating to a 12% increase year over year [2].

The company has raised its full-year earnings guidance, now anticipating adjusted earnings per share to grow between 1% and 3% annually, an upward revision from its prior 0% to 3% growth outlook. Despite the positive momentum, Verizon's stock is still down about 15.5% year-to-date in 2025, trading at approximately 9.2 times this year's expected earnings and offering a compelling dividend yield of around 6.3% [2].

JPMorgan has raised its price target on Verizon to $49.00 from $47.00, citing the company’s focus on profitability over subscriber growth. The investment bank expects flat subscriber numbers in the third quarter and a 2025 consolidated EBITDA estimate of $50.34 billion, representing 3.2% year-over-year growth [1]. Goldman Sachs has maintained its Buy rating on Verizon with a price target of $52, acknowledging the company’s strong financial metrics and improved business segment performance [3].

Verizon's overall stock score is driven by strong financial performance and positive earnings call highlights, including strategic growth initiatives. While technical indicators and valuation present some risks and opportunities, the company's stable financial foundation and high dividend yield make it a solid investment in the telecommunications sector [3].

References:

[1] https://www.investing.com/news/analyst-ratings/verizon-stock-price-target-raised-to-49-by-jpmorgan-on-profitability-focus-93CH-4145432
[2] https://www.gurufocus.com/news/2991433/verizon-vz-stock-rises-on-strong-q2-earnings-and-raised-guidance
[3] https://www.tipranks.com/stocks/vz/forecast