Verizon ( VZ -2.10% ) The company’s stock price experienced a significant decrease in late July following the release of its second-quarter financial results. The company did not perform as well as expected, largely due to a decrease in the number of customers upgrading their phones.
Despite the skepticism surrounding the stock, TD Cowen’s Gregory Williams continues to have faith in it. In a recent report on Verizon, Williams confidently reiterated his recommendation to buy shares of the struggling telecommunications company.
An optimistic expert continues to hold his position.
Williams reiterated his recommendation to buy Verizon stock and maintained his price target of $51 per share. Based on the current closing price, this implies a potential increase of 26%.
The analyst’s recent remarks followed a meeting organized by TD Cowen for investors, which included the telecom company’s Chief Network Officer Lynn Cox and the head of investor relations, Brady Connor.
The opinions shared by the two executives provided Williams with important insights. Initially, he is optimistic that Verizon will largely complete the deployment of its crucial C-band, necessary for authentic 5G communication, by the conclusion of 2025. Additionally, he anticipates that an AI-driven modernization process will enhance the company’s performance.
Several experts believe that smartphones equipped with built-in artificial intelligence technology, such as the ones being worked on by various companies. Apple , it will be well-received by customers and boost the performance of telecommunications companies.
Still feeling the effects of the recent quarterly earnings results.
Verizon’s stock has been stagnant following the earnings report, and it seems like investors are not very forgiving at the moment. While the company did fall short on revenue, the discrepancy wasn’t too worrisome.
At the same time, management might not be fully aware of a possible increase in the frequency of upgrades. The incorporation of AI features can greatly enhance the appeal of phone models, potentially leading users to gravitate towards the significantly more advanced models.
