Goldman Sachs: The overall performance of Verizon (VZ.US) Q2 earnings report is good, reaffirming the “buy” rating

The Zhitong Finance App learned that Goldman Sachs released a research report reaffirming the “buy” rating of Verizon (VZ.US), and the target price is still 52 US dollars. Goldman Sachs said that in the past quarter, Verizon's overall financial indicators performed well, and the profit guidance for 2025 was raised.

Goldman Sachs believes that the trend in the wireless business is better than expected, although management did not once again reaffirm the guidelines for improving net new user indicators. Goldman Sachs believes that Verizon's stock price may perform well in the short term because investors were pessimistic in their previous positions, and they were worried that the company's growth would slow down.

On the positive side, Goldman Sachs sees Verizon's strong EBITDA and free cash flow as encouraging, which shows that the company can improve profitability even in the face of higher wireless user attrition rates and subsidies. However, from a negative perspective, competition in the wireless market is still fierce, and the overall broadband market is weak. Goldman Sachs also emphasized that Verizon's commercial division's performance has improved significantly, which will help the company achieve more steady financial growth and greater financial flexibility in the future.

Goldman Sachs also said that the impact of Verizon's second-quarter earnings report on the industry is still unclear because the growth trend of wireless users was better than expected, while the net new broadband user data (including fiber and fixed wireless users) fell short of expectations. Given that the company's capital expenditure guidelines have not changed, Goldman Sachs does not expect Verizon's earnings report to have an impact on electric tower stocks such as American Electric Tower (AMT.US), Guancheng International (CCI.US), and SBA Communications (SBAC.US).

By the close of the US stock market on Tuesday, Verizo was up 1.11% to $42.96. The stock has accumulated a cumulative increase of 13% since this year.