Scotiabank Raises Verizon Target to $54.50, Cites Subscriber Growth and Cost Cuts
Scotiabank upgraded Verizon to Outperform from Sector Perform and raised its price target to $54.50, citing robust subscriber additions and cost improvements. The firm forecasts additional cost reductions in 2027–28 and labels shares as cheap, highlighting lower wireless churn, continued broadband growth and Verizon’s 19-year dividend increase streak.
1. Scotiabank Upgrade and Price Target Increase
Maher Yaghi elevated Verizon from Sector Perform to Outperform and lifted the price target to $54.50 from $50.25, emphasizing strong momentum in subscriber additions and ongoing cost improvement initiatives.
2. Forecasts for Cost Reductions and Growth Drivers
Scotiabank expects further cost reductions in 2027 and 2028; it anticipates that price adjustments, reduced wireless churn and expanding broadband services will underpin stronger revenue growth.
3. Dividend Track Record and Valuation Considerations
Verizon has raised its dividend for 19 consecutive years, and the firm views current share levels as undervalued based on steady cash flows, predictable financial performance and a stable customer base.