Verizon: Goldman Sachs Reiterates Buy Rating, Raises PT to $49

Verizon: Goldman Sachs Reiterates Buy Rating, Raises PT to $49

Goldman Sachs has reiterated its Buy rating on Verizon Communications (NYSE: VZ) and raised its price target to $49, according to a recent report. The investment bank's analyst, David Kline, maintains that Verizon's strong financial performance and strategic initiatives, particularly in the 6G technology and infrastructure expansion, justify the upward revision in the price target [1].

Verizon's stock has been underperforming the broader Nasdaq Composite index, gaining only 2.1% over the past three months compared to the Nasdaq's 11.9% return. However, the company reported strong second-quarter results, with sales improving by 5.2% year-over-year and earnings per share beating analyst expectations [2]. Despite this, Verizon's stock has lagged behind its rival AT&T Inc. (T), which has seen its stock soar by 47.8% over the past year.

Goldman Sachs believes that Verizon's disciplined approach to customer acquisition and integration of AI in customer care will boost operational efficiency and drive growth. The analyst also noted that Verizon's recent mixed securities shelf offering, which includes up to $10 billion in new securities, supports its long-term growth initiatives and capital flexibility [3].

Verizon's debt-to-equity ratio of 1.42, as of August 2025, reflects a prudent approach to debt management, with the company aiming to reduce leverage compared to its peak levels in 2020. The mixed securities shelf offering also aims to preserve financial flexibility and support dividend sustainability despite potential equity dilution risks from new share issuance [3].

Goldman Sachs' positive outlook on Verizon is supported by the company's strong financial performance and strategic initiatives. The investment bank's price target of $49 suggests a potential 9.3% upside from current levels, implying that investors may benefit from Verizon's long-term growth prospects.

References:
[1] https://finance.yahoo.com/news/analysts-think-verizon-communications-vz-041034786.html
[2] https://www.indexbox.io/blog/verizon-stock-underperforms-nasdaq-despite-earnings-beat/
[3] https://www.ainvest.com/news/verizon-mixed-shelf-offering-balancing-capital-flexibility-shareholder-high-stakes-expansion-era-2508/