BofA Reinstates Coverage of Verizon Communications (VZ) with a Neutral Rating

Verizon Communications Inc. (NYSE:VZ) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge Funds. On July 7, BofA analyst Michael Funk reinstated coverage of Verizon Communications Inc. (NYSE:VZ) with a Neutral rating and a $45 price target.

The firm told investors that it anticipates reduced promotional intensity from Verizon Communications Inc. (NYSE:VZ) as compared to its peers, which is “financially prudent.” However, it also stated that it presents risk to reporting of consensus net add forecasts.

The analyst further stated that the upcoming Frontier Communications acquisition is free cash flow dilutive, which may present a risk to consensus FCF forecasts once closed.

Verizon Communications Inc. (NYSE:VZ) provides communications, information, and entertainment services and products. Its operations are divided into the Consumer and Business segments.

The Consumer segment manages consumer-focused wireline and wireless communication products and services. In contrast, the Business segment focuses on services and products such as data, FWA broadband, video and conference services, corporate networking solutions, and more.

While we acknowledge the potential of VZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.