Evercore Names Verizon Top Wireless Pick, Upgrades Stock Rating

Evercore ISI raised its rating on Verizon ( NYSE: VZ ) to “outperform” from a prior investment rating of “in line” on Friday and designated the stock as its top choice within the larger wireless sector.

The research company pointed out that VZ stocks have significantly surpassed the overall market performance this year. Despite this, the stock still falls short when compared to competitors like AT&T. T and T-Mobile U.S. ( TMUS ).

Evercore remains bullish on Verizon’s approach to broadband through both fiber and fixed wireless networks. They also noted that there is a significant discrepancy in how telecommunications companies perceive Verizon’s fiber initiatives compared to their competitors, notably AT&T.

They think that the management has performed effectively in enhancing the trends of postpaid subscribers within the consumer division, demonstrated ongoing progress among business wireless clients, and is regularly achieving its goals for broadband subscribers.

They believe that Verizon's wireless service revenue growth will likely remain robust even with fluctuating net additions, although they are wary about the expansion of postpaid phone subscribers throughout the sector.

"Despite possible fluctuations in subscribers, we retain our confidence in Verizon’s capability to achieve its objective of increasing wireless service revenues," Evercore stated on Friday.

VZ's price target was raised by $4 to $48, indicating an upward potential of almost 12%.