Added to YB: 2026-02-19
Pitch date: 2026-02-17
VZ [bullish]
Verizon Communications Inc.
-0.07%
current return
Author Info
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Company Info
Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and streaming products and services to consumers, businesses, and governmental entities worldwide.
Market Cap
$202.7B
Pitch Price
$48.64
Price Target
72.00 (+48%)
Dividend
5.89%
EV/EBITDA
6.61
P/E
11.83
EV/Sales
2.68
Sector
Diversified Telecommunication Services
Category
dividend
Verizon Investment Thesis
VZ (buy): New CEO Schulman driving operational reboot after $20B Frontier acquisition (closed Jan 2026), adding 10M fiber passings to enable nationwide convergence strategy (50% lower churn). AST SpaceMobile satellite partnership adds $3.0-11.4B value through 2030 via churn reduction, tower rationalization & D2D revenue. Q4 2025: 616K postpaid adds (best since 2019); FY2026 guidance 750K-1M (2-3x acceleration). FY2026E FCF $21.5B+ (7% growth) funds new $25B buyback + 5.8% dividend yield. Fed easing to 2.0-2.5% by 2028 = $8-12/share DCF lift via WACC compression + P/E expansion from 10x to 12-13x. 24-mo PT $62-72 (39-59% total return). Optimal trade: Jan 2028 $55 LEAPs at $3.30 (200-600% upside, 18-20% IV at 5yr low). Risks: elevated leverage (2.2x), Frontier integration execution, churn must reverse, AST constellation deployment timing.
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