Verizon (VZ) and Ericsson (ERIC) have signed a multi-year agreement worth $8.3 billion in which Ericsson will provide 5G solutions to accelerate the deployment of Verizon’s next-generation 5G network in the United States.
The deal will allow Verizon to enhance and expand its 5G Ultra Wideband coverage, network performance and user experience.
Notably, the technological solutions provided by Ericsson, including Massive MIMO, Ericsson Spectrum Sharing and Ericsson Cloud RAN, are part of the high-performing Ericsson Radio System portfolio to support 5G services. (See Verizon stock charts on TipRanks).
The President and Head of Ericsson in North America, Niklas Heuveldop, said, “This is a significant strategic partnership for both companies and what we’re most excited about is bringing the benefits of 5G to U.S. consumers, enterprises and the public sector.”
“With this new agreement, we will be able to continue driving innovation and widespread adoption of 5G,” said Kyle Malady, Chief Technology Officer for Verizon.
On July 7, Tigress Financial analyst Ivan Feinseth reiterated a Buy rating on Verizon with a price target of $67 (upside potential of 18.5%).
Feinseth is of the opinion that Verizon stock has upside potential on account of “growing opportunities” in wireless and broadband. The analyst says Verizon continues to benefit from the ongoing rollout of its “transformative” 5G network.
Overall, the stock has a Hold consensus based on 2 Buys, 8 Holds and 1 Sell. The average Verizon price target of $60.11 implies 6.3% upside potential from current levels.
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Verizon is currently Very Positive, as the cumulative change in holdings across all 17 hedge funds that were active in the last quarter was an increase of 3.1 million shares.
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