Verizon Communications (VZ) PT Lowered to $64 at JPMorgan After Analyst Day

JPMorgan analyst Philip Cusick lowered the price target on Verizon Communications (NYSE: VZ) to $64.00 (from $65.00) while maintaining a Overweight rating after the company held an analyst meeting to discuss its long term plans for its C-Band spectrum purchase to drive its 5G strategy. Overall the focus on revenue opportunities in fixed broadband and Mobile Edge Compute was in-line with expectations of these being revenue opportunities to justify >$50b in spectrum spend. The increased Capex spend of $10b over 3 years is more than expected but most of the spectrum spending and subsequent interest expense was already in the model.

The analyst stated "Net-net we see Verizon, trading at 11.2x 2021 EPS as attractive but expect shares remain range-bound until we see evidence of better revenue/sub growth later in the year."

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