CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target price at $30, applying an EV/EBITDA multiple of 6.1x to our 2024 estimate, a slight discount to its three-year historical average multiple at 6.8x, reflecting our view that it will continue to lose market share. We raise our 2023 EPS estimate by $0.05 to $4.70 and trim 2024’s by $0.05 to $4.63. VZ reported Q3 operating EPS of $1.22 vs. $1.32, $0.04 above the consensus. Q3 revenue declined 2.6%, driven by a 2.3% drop in the Consumer segment due to an 11.8% decline in equipment revenue, as well as a 4.0% fall in the Business segment driven by a 15.9% decline in wholesale revenue. Consumer retail postpaid phone net losses were 51K, while business postpaid phone net adds were 151K. While results did come in ahead of expectations, VZ is still losing consumer wireless customers while AT&T (T 15 ***) and T-Mobile (TMUS 141 *****) both reported strong net additions; thus, we are still negative on the company.