Scotiabank Lifts Verizon (VZ) to Outperform, Calls Shares "Cheap" at Current Levels

Verizon Communications Inc. (NYSE:VZ) is included among the 14 Stocks on the Verge of Becoming Dividend Aristocrats.

On March 9, Maher Yaghi of Scotiabank upgraded Verizon Communications Inc. (NYSE:VZ) to Outperform from Sector Perform. The firm also raised its price target to $54.50 from $50.25 after meetings with management. The analyst said Verizon’s momentum in subscriber additions and cost improvements appears “strong,” according to the research note. Scotiabank also expects further cost reductions in 2027 and 2028. The firm believes price cuts, combined with lower churn in wireless and continued broadband growth, could help the company deliver stronger revenue growth. At current levels, the analyst described the shares as “cheap.”

In a CNBC report published on February 26, Wolfe Research noted that Verizon raised its dividend in September for the 19th consecutive year. Jonathan Kees of Daiwa Capital Markets pointed to the steady profits, dividend payments, and share price stability that telecom companies like Verizon can offer investors. He made the following remark:

“In a period of economic and market uncertainty, we see the telco industry’s steady business, stable customer base & predictable financial performance as a welcome haven for anxious investors. We see Verizon as having the best risk-reward, justifying its upgrade.”

He also noted that among the three major US telecom companies, Verizon has the longest track record of paying dividends and maintains a “singular focus” on increasing those payments.

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

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