Verizon is off to a solid start in 2022, but the stock will struggle to build on that momentum, according to JPMorgan. Analyst Philip Cusick downgraded Verizon to neutral from overweight, saying in a note to clients Wednesday that the phone subscriber business could be due for a slowdown. “We are increasingly concerned about the subscriber growth outlook for postpaid phones in 2022 for Verizon and the industry overall, even beyond 1Q which is seasonally soft and where we expect Verizon to post subscriber losses,” Cusick wrote. Verizon reported its fourth-quarter results Tuesday, and it slightly beat estimates on the top and bottom lines. Its stock fell Tuesday morning before pushing back up later in the day, closing down 0.1%. The stock is up 1.8% in January, easily outperforming the broader market. Shares fell 0.5% in premarket trading Wednesday. However, the competition for a shrinking pie of new subscribers could hurt the company in the months ahead, JPMorgan said. “We see limited growth upside for Verizon in wireless, no near-term buyback given the capex spend for C-Band and potentially a headwind from rising rates,” the analyst said. JPMorgan cut its price target to $56 per share from $62. The new target is less than 6% above where the stock closed Tuesday. -CNBC’s Michael Bloom contributed to this report.
A woman looks at her phone in front of a Verizon Fios sign in Times Square in New York March 11, 2016.
Brendan McDermid | Reuters
Verizon is off to a solid start in 2022, but the stock will struggle to build on that momentum, according to JPMorgan.
