RBC Capital Raises its Price Target on Verizon Communications Inc. (VZ) to $48

Core Viewpoint - Verizon Communications Inc. is recognized as one of the 10 Most Profitable Undervalued Stocks to Buy, with multiple financial institutions raising their price targets following a strong earnings report and a positive outlook for the company's turnaround strategy [1][2]. Financial Performance - Verizon reported fourth-quarter revenue of $36.4 billion, slightly exceeding the consensus estimate of $36.2 billion [3]. - The company achieved postpaid phone net additions of 616,000, an increase from 504,000 in the previous year, marking the strongest quarter for this metric since 2019 [3]. Analyst Ratings and Price Targets - RBC Capital raised its price target on Verizon to $48 from $44 while maintaining a Sector Perform rating, emphasizing the company's turnaround plan focused on reducing operating and capital expenditures to improve free cash flow [1]. - JPMorgan increased its target to $49 from $47, citing stronger-than-expected postpaid phone additions and a favorable financial outlook for 2026 [2]. - Citi raised its target to $50 from $48, noting signs of a more aggressive restructuring effort that could enhance margin improvement and earnings stability [2]. Shareholder Returns - Verizon is committed to returning $25 billion to shareholders through share repurchases, a strategy welcomed by analysts as a positive move for investor confidence [2][3]. Company Overview - Verizon Communications Inc. provides a range of communications, technology, information, and entertainment services to consumers, businesses, and government customers globally, operating through two main segments: Verizon Consumer Group and Verizon Business Group [4].