Wells Fargo Cuts Verizon (VZ) Target in Wireless Sector Reassessment

Verizon Communications Inc. (NYSE:VZ) is included among the 12 Best Dow Jones Dividend Stocks to Buy According to Hedge Funds.

Ken Wolter / Shutterstock.com

On January 26, Wells Fargo chopped its terms people connected Verizon Communications Inc. (NYSE:VZ) to $41 from $43. The steadfast kept an Equal Weight standing connected the stock. The accommodation came arsenic the steadfast took different look astatine the wireless space.

Wells Fargo said fourth-quarter trends are shaping up amended than expected, with subscriber maturation showing immoderate upside. Even so, competitory pressures are inactive a concern. That ongoing hostility has kept capitalist sentiment cautious and pushed the steadfast to little terms targets crossed the sector.

For Verizon, the concern lawsuit continues to thin heavy connected the dividend. The institution has raised its payout for 19 consecutive years. Those increases person not travel astatine the disbursal of the equilibrium sheet. By precocious 2025, Verizon had chopped nett unsecured indebtedness to astir $112 cardinal and brought its debt-to-EBITDA ratio down to astir 2.2. In applicable terms, that suggests the institution is successful a overmuch amended presumption to grip its indebtedness utilizing operating earnings.

Management has repeatedly pointed to this equilibrium expanse advancement arsenic essential. It helps support the dividend portion leaving country to support spending connected priorities similar 5G and fibre buildouts.That attack sets Verizon isolated from immoderate high-profile names piling connected indebtedness to pursuit AI-related projects, information centers, oregon ample acquisitions. Verizon has stayed successful its lane, focusing connected wireless and broadband, and steering wide of the risks that travel with pushing into little tested territory.

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

While we admit the imaginable of VZ arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 13 Dividend Stocks with Over 8% Yield and Retirement Stock Portfolio: 12 Low Risk Investments

Disclosure: None.