Of the 30 analysts covering Verizon (VZ), 15 analysts rated the stock as a “buy,” and 15 analysts rated the stock as a “hold.” There were no “sell” ratings. Analysts set a target price of $56.58 for the stock and a median consensus estimate of $57.50. Verizon is trading at ~$53.39, a 7.1% discount to its consensus median target estimate.
Verizon (VZ) has a solid fundamental outlook and has favorable growth prospects for its Wireless segment. The company also expects improvement in its Wireline segment’s operations performance.
Verizon expects its revenues to grow in 2018 on the back of better-than-expected equipment revenue trends. The company’s October launch of 5G wireless residential broadband services in the United States could help the company boost its user base.
The company posted upbeat results in the second quarter. Verizon also expects its revenues to increase by low to mid-single-digit percentage rates in 2018, compared to the earlier forecast of low single-digit percentage growth. This upbeat revenue guidance came on the back of better-than-expected equipment revenue trends.
In 2018, the company expects its adjusted earnings to increase by low single-digit percentage rates. Verizon also expects its 2018 capex to stand at the lower end of its previous range of $17.0 billion–$17.8 billion.