Bernstein SocGen Group analysts initiated coverage on Verizon Communications (NYSE:VZ) with a Market Perform rating and a $48 price target, reflecting both the challenges and opportunities facing the telecom giant. While Verizon remains a leader in the market, it continues to grapple with competitive pressures from disruptors like T-Mobile and Cable MVNOs, which have eroded its market share in recent years.
The company’s share of postpaid net additions has been the weakest among major mobile network operators, but signs of improvement have emerged under the new management team that took the helm last year. Operational metrics, including postpaid net adds, are beginning to show positive momentum.
Fixed Wireless Access (FWA) has been a standout growth driver for Verizon. Since its 2021 launch, FWA has outperformed expectations, reaching the company’s initial subscriber target of 4-5 million a year ahead of schedule. Verizon now forecasts doubling this base over the next five years, which could provide incremental margin expansion and bolster near-term profitability.
However, Verizon’s broadband growth is constrained by its relatively stagnant fiber footprint, which has not expanded at the pace of competitors like AT&T. This limitation reduces bundling opportunities and potential incremental wireless share gains tied to broadband services. The upcoming acquisition of Frontier could address these gaps, but its impact won’t materialize until the deal’s expected close in 2026.