RBC Capital Raises Verizon Communications Price Target to $46.00, Maintains "Sector Perform" Rating.

RBC Capital has raised its price target for Verizon Communications (VZ) to $46.00, a 2.22% increase, while maintaining a "Sector Perform" rating. Analysts forecast an average target price of $47.81, with a high estimate of $55.00 and a low estimate of $43.00, implying an 11.30% upside. The average brokerage recommendation is 2.5, indicating "Outperform" status.

RBC Capital Markets has increased its price target for Verizon Communications (VZ) to $46.00, marking a 2.22% rise from its previous target of $45.00. The firm maintains a "Sector Perform" rating for the telecommunications giant [1].

The new target comes in the wake of Verizon's strong earnings report for the second quarter of 2025. The company reported an adjusted earnings per share (EPS) of $1.22, surpassing expectations of $1.19. Revenue also exceeded forecasts, reaching $34.5 billion compared to the projected $33.71 billion [2].

Analysts are forecasting an average target price of $47.81 for Verizon, with a high estimate of $55.00 and a low estimate of $43.00. This indicates an 11.30% upside potential. The average brokerage recommendation is 2.5, which translates to an "Outperform" status [1].

Verizon's earnings report highlighted a mixed performance, with service revenues in line with expectations and improved profits. However, the company lost more postpaid phone subscribers than expected, which is a concern in the highly competitive wireless market [2].

Verizon has been shifting its focus from year-over-year subscriber growth to maintaining discipline while growing service revenues and EBITDA. The company has also raised its 2025 financial guidance, including EBITDA projections by 0.25%, EPS by 0.5%, and free cash flow by 11% [1].

Despite the subscriber loss, Verizon's stock has shown resilience. The stock rose 4.6% in morning trading following the earnings report, reaching $42.72 [2]. RBC Capital's positive outlook on Verizon's fundamentals and strategic focus on profitability suggests that the company is well-positioned to navigate the competitive landscape.

References:
[1] https://www.investing.com/news/analyst-ratings/verizon-stock-price-target-raised-to-46-from-45-at-rbc-capital-93CH-4146547
[2] https://www.inkl.com/news/verizon-earnings-revenue-top-views-telecom-firm-raises-guidance