Verizon Vs. AT&T: Cash Flow Quality And Valuations Compared
Portfolio Pulse from Surbhi Jain
KeyBanc analyst Brandon Nispel upgraded Verizon Communications Inc (VZ) with a price target of $45, citing tailwinds and attractive valuation. Verizon's market cap is over $163 billion, with an enterprise value of $339 billion, higher than AT&T's (T) and T-Mobile's (TMUS). Verizon has higher quality cash flows and a TTM Free Cash Flow/Share of $3.25, compared to AT&T's $2.76. Over the past year, VZ stock is up 4.03%, while T is down 1.77%. Despite this, AT&T may appear more attractively valued on current parameters, and is ranked as the top telecom pick for 2024 by BofA Securities and is on Citi's buy-rated stocks list.
January 03, 2024 | 5:52 pm
News sentiment analysis
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NEUTRAL IMPACT
T-Mobile US has the largest market cap among the three but was not the focus of the analyst's positive outlook compared to Verizon and AT&T.
T-Mobile was mentioned for its market cap position but did not receive the same level of positive or negative analyst attention as Verizon or AT&T, suggesting a neutral short-term impact on its stock price.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
AT&T is considered more attractively valued relative to Verizon and is BofA's top telecom pick for 2024, also featured on Citi's buy-rated list.
Despite the positive note on Verizon, AT&T is recognized for its attractive valuation and is favored by BofA Securities and Citi, which could lead to increased investor interest and a potential short-term uptick in its stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Verizon upgraded by KeyBanc with a price target of $45, indicating a potential upside. Strong cash flow and market position highlighted.
The upgrade by KeyBanc and the set price target above current levels suggest a positive outlook for Verizon, which could lead to an increase in investor confidence and a potential short-term rise in the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90