Keybanc downgraded VZ to "sector weight" from "overweight"
Shares of telecommunications giant Verizon Communications Inc. (NYSE:VZ) are 0.8% lower before the open following a bear note from Keybanc. The analyst downgraded VZ to "sector weight" from "overweight," noting multiple catalysts for this pessimism, including limited EBITDA growth potential in 2025, negative impacts from multiple acquisitions, and slowing improvements in the company's postpaid phone net additions.
In addition to the downgrade, Deutsche Bank cut its target price on the Dow component from $44 to $42. Coming into today, 10 of 22 analysts recommended a "buy" or better, and the 12-month average price target of $46.69 is an 8.9% premium to last night's close. This leaves the equity vulnerable to more bear notes going forward.
On the charts, Verizon stock is in the midst of choppy trading following a post-earnings bear gap, with the shares falling despite the company's third-quarter beat. The $43 level appears to be emerging as a ceiling, with additional pressure from the ascending 50-day moving average. Year to date, VZ is up 13.7%.