Scotiabank Lifts Verizon (VZ) to Outperform, Calls Shares “Cheap” at Current Levels

Core Viewpoint - Verizon Communications Inc. is recognized as a potential Dividend Aristocrat, reflecting its strong dividend history and financial stability [1] Group 1: Analyst Upgrades and Financial Performance - Scotiabank upgraded Verizon to Outperform from Sector Perform, raising the price target to $54.50 from $50.25 after positive management meetings [2] - The analyst noted strong momentum in subscriber additions and cost improvements, with expectations for further cost reductions in 2027 and 2028 [2] - Price cuts, lower churn in wireless, and continued broadband growth are anticipated to drive stronger revenue growth for Verizon [2] Group 2: Dividend History and Market Position - Verizon raised its dividend for the 19th consecutive year, highlighting its commitment to returning value to shareholders [2] - The company is viewed as a stable investment option during economic uncertainty, with a steady customer base and predictable financial performance [2] - Among major US telecom companies, Verizon has the longest track record of paying dividends and focuses on increasing those payments [2]