Bernstein reduced its price target for Verizon Communications Inc. to $44 from $46 on January 16, maintaining a Market Perform rating. The firm stated the telecom industry appears to be entering a more competitive phase.
Quarterly updates through 2025 showed increasing pressure that erased much of the sector's gains from the first half, according to Bernstein. Cable companies also lost momentum in the second half.
Bernstein expects this challenging competitive environment to persist into 2026, with no clear signs of improvement following recent strategic actions.
Separately, Reuters reported on January 15 that the California Public Utilities Commission approved Verizon's $20 billion acquisition of Frontier Communications. This approval removed the final major obstacle for the deal to close that day.
As part of the regulatory approval, Verizon agreed to invest in 75,000 new fiber locations and build 25 new wireless towers to expand rural coverage in California. The company also committed to additional broadband rollout requirements.
Verizon pledged to provide free broadband service to many low-income California households for at least ten years. Regulators noted the agreement includes expanded commitments to tribal communities.
Verizon Communications Inc. operates as a holding company that provides communication, technology, information, and streaming services to consumers, businesses, and government clients through its subsidiaries.