Verizon (VZ) Faces Subscriber Losses Despite Meeting Guidance

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3 days ago
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Key Highlights:

  • Verizon reports increased subscriber losses and a cautious outlook for 2025.
  • Stock price target set at an average of $47.40 by top analysts, suggesting a potential upside.
  • GuruFocus estimates predict a slight downside with a GF Value of $40.84.

Verizon Communications Inc. (VZ, Financial) witnessed a significant 5.5% drop in premarket trading, a reaction to the company's disclosure of higher subscriber losses and a conservative outlook for profits through 2025. Despite these challenges, Verizon remains steadfast in its strategic financial goals, maintaining its current capital expenditures and cash flow objectives. The telecommunications giant reported that wireless consumer net losses have increased to 356,000, and there's a noted decrease in broadband net additions compared to the previous year.

Wall Street Analysts' Insights

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Analyzing the consensus from 22 analysts, the projected one-year price target for Verizon sits at an average of $47.40. This includes a high forecast of $55.00 and a low of $40.00. These valuations indicate an implied upside of 13.30% from the current trading price of $41.84. For investors seeking more in-depth estimate data, please visit the Verizon Communications Inc (VZ, Financial) Forecast page.

The consensus among 27 brokerage firms positions Verizon with an average brokerage recommendation of 2.5, which corresponds to an "Outperform" status. On the rating scale, where 1 equals Strong Buy and 5 represents Sell, this suggests cautious optimism towards the telecom company's stock.

Analyzing GF Value and Future Outlook

According to GuruFocus estimates, Verizon's GF Value one year from now is projected to be $40.84. This reflects a potential downside of 2.38% from its current price of $41.835. The GF Value is an essential metric as it represents GuruFocus' assessment of the fair value at which the stock should trade, derived from historical trading multiples, past growth, and anticipated future performance. For additional detailed data, please refer to the Verizon Communications Inc (VZ, Financial) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.