Verizon Value Segment Is Limiting Growth

Summary:

  • Cannibalization from the value segment risks hindering core postpaid wireless business growth.
  • After two rounds of cost cuts propped up EBITDA, Verizon is out of options and facing 3%+ expense growth.
  • I rate Verizon stock a hold at a price target of $38.

Verizon Wireless Retail Location. Verizon delivers wireless, high-capacity fiber optics and 5G communications.

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I am initiating coverage on Verizon Communications (NYSE:VZ) following some interesting trends I noticed while researching an analysis on a competitor.

Verizon is down significantly from its historical high 50s, low 60s performance, although there has been a slight uptick


Analyst’s Disclosure: I/we have a beneficial long position in the shares of VZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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