Verizon Coverage Resumed by Morgan Stanley with Equal Weight Rating and $47.75 Average Price Target

Morgan Stanley resumes coverage on Verizon with an "equal weight" rating, citing the company's valuation and cash flow potential. The average price target from 22 analysts is $47.75, suggesting a 13.40% upside. The GF Value estimates a possible downside to $41.16, indicating a 2.26% potential drop. The consensus recommendation from 27 brokerage firms places Verizon at an average brokerage recommendation of 2.5, suggesting an "Outperform" status.

Morgan Stanley has resumed coverage on Verizon Communications (NYSE:VZ) with an "equal weight" rating and a $47 price target, according to a recent research note [1]. The brokerage firm views Verizon's stock as fairly valued, with its target implying about 9% upside. The forecast reflects 2–3% annual adjusted EBITDA growth through 2028 and incorporates the impact of recent U.S. tax legislation that restores bonus depreciation, which could lift free cash flow by more than $1.5 billion per year through 2027. This increase could give Verizon flexibility to resume buybacks or accelerate fiber expansion [2].

However, any meaningful re-rating will hinge on improved performance in its consumer wireless unit, the key driver of sentiment around the stock. Morgan Stanley's bull case sees shares rising to $54 if Verizon can lift wireless subscriber growth and EBITDA to above 3% annually. Conversely, a bear case scenario, with industry competition intensifying and subscriber gains slowing, could push the stock down to $35 [1].

Verizon currently trades at a discount to peers, which Morgan Stanley considers appropriate given its moderate growth profile. The firm noted that its updated estimates reflect tax-driven FCF upside, while many peers' figures do not yet fully account for the recent law change [3]. Additionally, the note referenced Verizon's pending acquisition of Frontier's fiber assets, with a $38.50 price target on Frontier shares based on the agreed deal value, expected to close in the first half of 2026 [1].

The average price target from 22 analysts is $47.75, suggesting a 13.40% upside, while GF Value estimates a possible downside to $41.16, indicating a 2.26% potential drop [4]. The consensus recommendation from 27 brokerage firms places Verizon at an average brokerage recommendation of 2.5, suggesting an "Outperform" status [3].

Verizon's recent developments underscore its focus on innovation and maintaining its position in the telecommunications sector. The company's commitment to sustaining dividend payments is supported by strategic investments in network infrastructure and customer experience. At its 2025 Annual Meeting of Shareholders, Verizon re-elected all board nominees and approved executive compensation, while three shareholder proposals were defeated [3].

Verizon's response to the Central Texas floods also highlights its commitment to community support and connectivity. The company donated $100,000 to Texas Search and Rescue (TEXSAR), waived call, text, and data fees for affected customers, and provided satellite devices for recovery operations [4].

References:

[1] https://finance.yahoo.com/news/ms-resumes-verizon-equal-weight-160422514.html
[2] https://www.investing.com/news/stock-market-news/ms-resumes-verizon-at-equalweight-sees-limited-upside-without-wireless-gains-4130607
[3] https://uk.investing.com/news/analyst-ratings/morgan-stanley-resumes-verizon-stock-coverage-with-equalweight-rating-93CH-4163403
[4] https://www.gurufocus.com/news/2964469/verizon-communications-inc-vz-responds-to-central-texas-floods-with-generous-support--vz-stock-news