Verizon’s (NYSE:VZ) Business Network Services has agreed to pay a $4.09 million fine. This penalty pertains to resolving allegations that it breached certain cybersecurity protocols while providing IT services to federal agencies.
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The settlement relates to the company’s Managed Trusted Internet Protocol Service (MTIPS), which provides federal agencies with secure connections to the public internet and other external networks. However, the U.S. Justice Department said Verizon’s MTIPS solution failed to completely satisfy three of the required cybersecurity controls between 2017 and 2021.
Upon discovering the issue, the company provided a written disclosure to the government and initiated an independent investigation. As the settlement resolves the allegations, let’s look at what the Street recommends for Verizon stock.
Is Verizon Stock a Buy, Sell, or Hold?
Verizon has so far impressed with its performance on the bottom line and surpassed Street’s earnings expectations in the last four consecutive quarters. Moreover, it is focusing on accelerating growth, improving operations, and strengthening its balance sheet, which is positive. The company’s Business segment is growing rapidly, as reflected through the continued postpaid phone net additions. At the same time, its cost reduction initiatives will likely generate strong savings and cushion its bottom line and cash flows.
Nevertheless, concerns related to the lead-sheathed cables keep analysts cautious in the short term.
With four Buy and nine Hold recommendations, VZ stock has a Moderate Buy consensus rating on TipRanks. Meanwhile, analysts’ average price target of $39.25 indicates 14.43% upside potential from current levels.
