Verizon Faces Slower Growth, Declining Cash Flow In 2025, Analyst Downgrades Stock
Keybanc Captial Markets analyst Brandon Nispel downgraded Verizon Communications Inc (NYSE:VZ) stock from Overweight to Sector Weight.
Nispel rerated and reduced his estimates following weaker-than-expected results. While the analyst’s prior outlook largely remains, he adjusted his rating based on limited EBITDA growth potential for 2025 (projected at 1.5% compared to 2.2% in 2024) and a likely decline in free cash flow (expected to fall to $17.5 billion in 2025 from $20.2 billion in 2024).
Verizon’s potential acquisition of Frontier Communications Parent, Inc (NASDAQ:FYBR), which he noted as a poor capital allocation decision, and slowing improvements in postpaid phone net additions combined with higher device subsidies, indicated higher costs for the same growth.
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