Verizon Communications' analyst price target has been reduced from $48.61 to $47.53 per share. Analysts cite ongoing execution risks, leadership transition uncertainty, and modestly lower growth expectations for the company.

Analyst Commentary

Analysts offered a range of perspectives following recent company developments and industry shifts. Their commentary highlights both positive and cautious outlooks with respect to Verizon's valuation, growth prospects, and execution risks.

• Some bullish analysts note that recent results exceeded conservative expectations for postpaid phone net losses. Messaging around pricing strategies and dividend sustainability has helped to support sentiment.
• Bullish adjustments to price targets were connected to stable guidance and sector-wide results that appear largely in line with consensus. This suggests fundamental business performance remains resilient.
• Verizon's agreement to utilize space-based cellular networks is viewed positively. This move may position the company competitively in emerging connectivity markets and help diversify future growth channels.
• Continued support for operational changes, such as marketing renewal and structural improvements, is seen as an opportunity to unlock incremental value and restore subscriber momentum.

• Bears emphasize that ongoing execution risk, particularly during leadership transitions, creates uncertainty around the company's ability to deliver on growth targets and maintain cash flow multiples.
• Some analysts lowered price targets to reflect restructuring risk and a modestly less optimistic growth outlook. They note concerns that operational overhauls may take time to result in improved performance.
• The competitive landscape, including increased complexity from potential dual-sourcing of satellite network partners and aggressive positioning by industry rivals, is viewed as a headwind for Verizon's valuation and market share retention.
• With a new CEO incoming, doubts remain as to how leadership will manage the delicate balance between subscriber growth, pricing power, and overall financial stability in a competitive market.

What's in the News

• Verizon is in discussions to acquire EchoStar's AWS-3 wireless spectrum licenses, which are considered valuable for 5G services (Bloomberg).
• Verizon reiterated its 2025 full-year guidance and projects total wireless service revenue growth of 2.0% to 2.8%.
• The company and Tillman Global Holdings secured a commercial fiber agreement with Eaton Fiber, which will expand Verizon's broadband reach beyond its traditional markets.
• Healthcare organizations such as AdventHealth and Tampa General Hospital have adopted Verizon’s Neutral Host and Private 5G networks to address expanding data and connectivity needs.
• Verizon announced Dan Schulman as the incoming CEO, effective October 2025, and Hans Vestberg will assist during the leadership transition.

Valuation Changes

• Consensus Analyst Price Target has fallen slightly, declining from $48.61 to $47.53 per share.
• Discount Rate has risen modestly, increasing from 6.78% to 7.11%. This change reflects heightened perceived risk.
• Revenue Growth projections have edged down, moving from 1.79% to 1.55% per year.
• Net Profit Margin estimates have decreased marginally, dropping from 15.31% to 15.00%.
• Future P/E multiple is expected to rise incrementally from 11.33x to 11.45x.