Goldman Sachs, Citi Raise Verizon (VZ) Targets, Highlight Shift to EBITDA and Cash Flow Focus

Verizon Communications Inc. (NYSE:VZ) is included among the Dividend Stock Portfolio for Income: 15 Stocks to Invest In.

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On March 25, Goldman Sachs analyst Michael Ng raised the price recommendation on Verizon Communications Inc. (NYSE:VZ) to $55 from $50. It reiterated a Buy rating on the shares.  The analyst said Q1 will introduce new segment reporting. Verizon is changing how it presents subscriber data, shifting the focus toward broader metrics like EBITDA, free cash flow, and customer accounts, as postpaid phone growth slows. He added that industry trends for postpaid net additions are expected to remain stable. At the same time, postpaid ARPUs are likely to face pressure from competitive pricing, back-book adjustments, and targeted discounts.

On March 20, Citigroup analyst Michael Rollins also raised the firm’s price goal on Verizon to $55 from $50 and maintained a Buy rating. The firm pointed to “positive optionality” tied to Verizon’s efforts to streamline costs and expand its converged services. It also said the company has a path to returning to annual service revenue growth by 2027, along with improvements in EBITDA and free cash flow.

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.

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