Verizon price target lowered to $40 from $42 at RBC Capital

RBC Capital analyst Kutgun Maral lowered the firm’s price target on Verizon to $40 from $42 and keeps a Sector Perform rating on the shares after its Q4 results. The company’s postpaid phone net adds were largely as expected and growth at fixed wireless continues to accelerate, though Q4 results and 2023 guidance point to growing headwinds across underlying wireless service and wireline revenue, margins, free cash flows, the analyst tells investors in a research note. Verizon remains in a tricky spot as the carrier with the largest customer base with premium pricing in a competitive market that is starting to see an industry-wide moderation after two years of elevated growth, RBC Capital states.