TD Cowen Boosts Verizon Target to $54 After Q4 Phone Subscriber Surge
TD Cowen lifted its Verizon price target to $54 from $51 on February 2, citing better-than-expected fourth-quarter phone subscriber additions that pressured EBITDA. Verizon achieved its strongest net customer additions since 2019, sparking a 12% share rally as revenue grew 2.5% to $138.2 billion and free cash flow reached $20.1 billion.
1. Price Target Increase
On February 2, TD Cowen raised its price target on Verizon to $54 from $51 while maintaining a Buy rating, highlighting stronger-than-expected fourth-quarter phone subscriber additions that had some impact on EBITDA margins.
2. Subscriber Growth and Financial Performance
Verizon reported its highest net customer additions since 2019 in Q4 2025, leading to an approximately 12% jump in share price on earnings release day; operating revenue climbed 2.5% to $138.2 billion.
3. Acquisition and Cash Flow Support
In early January, Verizon completed its acquisition of Frontier Communications to expand its fiber footprint. The company generated $20.1 billion in free cash flow last year, up from $19.8 billion, providing ample cover for $11.6 billion in annual dividend payments.