The times are changing for the telecomm industry, and traditional providers like Verizon now want a bigger slice of the TV and internet pie.
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At the end of the day, the telco’s motive may be simply boosting the top line, as the company sees wireless revenue continues to shrink.
Verizon is facing intensifying competitive pressure in the USA wireless market due to cut-throat pricing pressure from smaller players like T-Mobile US Inc. Moreover, the company faces competition from online video streaming services as they provide an extremely cheap source of TV programming. FBR & Co. have set a target price of 52 Dollars on its stock. They noted that the move was a valuation call. The company has a consensus rating of “Hold” and an average price target of $53.82. Morgan Stanley reaffirmed an “overweight” rating and set a $60.00 price target on shares of Verizon Communications in a research note on Sunday, October 23rd. The Wall Street Journal cautions that these are just preliminary talks and that there is no guarantee that a deal will be struck between the two companies. (NYSE:VZ) where 5 analyst have rated the stock as Strong Buy, 8 analysts said it’s a Buy, 18 rated the stock as Hold, 1 analysts reported Underperform and 0 analysts gave their recommendations as Sell.
But not everyone is convinced, including Wells Fargo’s Jennifer Fritzsche, who doesn’t think buying Charter is the kind of thing Verizon would do.
The Journal is quick to note that it’s unclear whether or not Charter CEO Tom Rutledge or other Charter executives will be open to a mega-merger. While some analysts have a High Price target for the stock of $61 and a Low Price Target of $45. Time Warner Cable company was previously owned by Time Warner before being spun off in 2009; Time Warner itself is now exploring a merger with AT&T, Verizon’s main rival in the wireless market. The firm has a 50-day moving average of $52.64 and a 200 day moving average of $51.84.
Verizon Communications (VZ) stock edged up on Friday while shares of Charter Communications (CHTR) slipped, as some analysts threw cold water on any possible merger of the companies.
EPS growth for this year is 80.70% and EPS growth for next year is expected to reach at 3.06%. During the same period in the previous year, the company posted $0.89 EPS.
TRADEMARK VIOLATION WARNING: “Charter Communications, Inc. (VZ)” was originally reported by Sports Perspectives and is the property of of Sports Perspectives. If you are reading this report on another site, it was illegally stolen and republished in violation of USA & global trademark & copyright legislation. The Relative Volume value measured for Verizon Communications Inc. Hall Laurie J Trustee acquired a new stake in Charter Communications during the fourth quarter worth approximately $920,000. HSBC Upgrades Verizon Communications Inc. Verizon Communications Inc. are listed in the Public Utilities sector within NYSE.
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The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 1st.
