Wells Fargo Cuts Verizon (VZ) Target in Wireless Sector Reassessment

Verizon Communications Inc. (NYSE:VZ) is included among the 12 Best Dow Jones Dividend Stocks to Buy According to Hedge Funds.

On January 26, Wells Fargo cut its price target on Verizon Communications Inc. (NYSE:VZ) to $41 from $43. The firm kept an Equal Weight rating on the stock. The adjustment came as the firm took another look at the wireless space.

Wells Fargo said fourth-quarter trends are shaping up better than expected, with subscriber growth showing some upside. Even so, competitive pressures are still a concern. That ongoing tension has kept investor sentiment cautious and pushed the firm to lower price targets across the sector.

For Verizon, the investment case continues to lean heavily on the dividend. The company has raised its payout for 19 straight years. Those increases have not come at the expense of the balance sheet. By late 2025, Verizon had cut net unsecured debt to about $112 billion and brought its debt-to-EBITDA ratio down to roughly 2.2. In practical terms, that suggests the company is in a much better position to handle its debt using operating earnings.

Management has repeatedly pointed to this balance sheet progress as essential. It helps protect the dividend while leaving room to keep spending on priorities like 5G and fiber buildouts.That approach sets Verizon apart from some high-profile names piling on debt to chase AI-related projects, data centers, or large acquisitions. Verizon has stayed in its lane, focusing on wireless and broadband, and steering clear of the risks that come with pushing into less tested territory.

Verizon Communications Inc. (NYSE:VZ) operates as a holding company. Through its subsidiaries, it provides communications, technology, information, and streaming services to consumers, businesses, and government customers.

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.

READ NEXT: 13 Dividend Stocks with Over 8% Yield and Retirement Stock Portfolio: 12 Low Risk Investments

Disclosure: None.