BofA Reinstates Coverage of Verizon Communications (VZ) with a Neutral Rating

Verizon Communications Inc. (NYSE:VZ) is one of the 10 Cheap Large Cap Stocks to Buy According to Hedge FundsOn July 7, BofA analyst Michael Funk reinstated coverage of Verizon Communications Inc. (NYSE:VZ) with a Neutral rating and a $45 price target.

Can Verizon’s Cash Flow Cover Its Dividend Long-Term?

A smiling customer receiving customer contact center solutions on their smartphone.

The firm told investors that it anticipates reduced promotional intensity from Verizon Communications Inc. (NYSE:VZ) as compared to its peers, which is “financially prudent.” However, it also stated that it presents risk to reporting of consensus net add forecasts.

The analyst further stated that the upcoming Frontier Communications acquisition is free cash flow dilutive, which may present a risk to consensus FCF forecasts once closed.

Verizon Communications Inc. (NYSE:VZ) provides communications, information, and entertainment services and products. Its operations are divided into the Consumer and Business segments.

The Consumer segment manages consumer-focused wireline and wireless communication products and services. In contrast, the Business segment focuses on services and products such as data, FWA broadband, video and conference services, corporate networking solutions, and more.

While we acknowledge the potential of VZ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XXXX and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.