"Barclays acknowledges a genuine headwind: both wireless and broadband pricing are starting to trend lower. That pressure is real, and it shows up in Verizon's own guidance, which calls for adjusted EPS growth of just 0% to 3.0% in 2025."
"The logic: when fear dominates markets, stable recurring revenues and reliable dividends attract capital regardless of pricing compression. That fear is measurable right now. The VIX sits at 31.05, placing it at the 96.5th percentile relative to the past year."
"Verizon's fundamentals support the defensive thesis. In Q4 2024, the company posted wireless service revenue of $19.998 billion, marking its 18th consecutive quarter of sequential growth."
Barclays increased its price target for Verizon Communications from $43 to $47 while maintaining an Equal Weight rating. The firm notes that the macro environment supports telecom's defensive positioning, even as wireless and broadband pricing trends decline. Verizon's guidance indicates adjusted EPS growth of 0% to 3.0% in 2025. The VIX's high level suggests increased market fear, prompting a shift towards lower-beta stocks. Verizon's fundamentals remain strong, with significant revenue growth and free cash flow supporting its dividend.
Read at 24/7 Wall St.
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