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Shares of Verizon (NYSE:VZ) are down about 3% heading into the open on Thursday after a MoffettNathanson analyst downgraded to Underperform from Market Perform with a $41 per share price target (down from $55).
While the analyst notes that Verizon “has done its best to avoid being dragged into AT&T’s promotional abyss,” he admits the company has enjoyed only limited success. Moreover, he takes note of T-Mobile’s “widening competitive advantage” when it comes to 5G.
“Verizon’s customer base, self-selected for their “best network” positioning, appears particularly vulnerable,” the analyst added in a client note.
Additionally, Verizon and its peers are forced to offer low-priced alternatives to fend off Cable’s accelerating momentum.
Verizon shares are down nearly 15% YTD.
