TD Cowen elevated its price target for Verizon Communications (NYSE:VZ) to $54.00 from $51.00 on Monday, while maintaining its existing rating on the telecommunications company.
The firm said the move reflected Verizon's fourth-quarter 2025 results, which delivered stronger-than-expected phone subscriber additions but included pressure on EBITDA in that period, according to TD Cowen's read of the results.
TD Cowen pointed to Verizon's 2026 guidance as evidence that the company can drive meaningful growth in phone subscribers while still producing solid EBITDA and free cash flow growth. The research note emphasized Verizon's stated focus on reducing customer churn as a central plank of that outlook.
Among the operational levers TD Cowen highlighted were the company's program to pare away non-core services, the potential to capture upside synergies from its Frontier Communications (FYBR) acquisition, and planned efficiencies in both operations and capital spending. The analyst team framed these items as contributors to what it called "the new VZ," arguing that future free cash flow from the Frontier deal and the company's dividend yield - reported at 6.3% - are underappreciated by the market.
Verizon's fourth-quarter 2025 financials provided the backdrop for the analyst revisions. The company reported adjusted earnings per share of $1.09, beating the consensus estimate of $1.06, and posted revenue of $36.4 billion versus an expected $36.1 billion. The results included more than 600,000 postpaid phone net additions, a metric highlighted by other brokerage responses to the quarterly report.
In the wake of the earnings release, several brokerages updated their views. Bernstein SocGen Group raised its price target on Verizon to $48.00 from $44.00, citing the company's strong showing including the postpaid phone net additions. Scotiabank increased its target to $50.25 and underscored Verizon's churn reduction strategy, noting the company has earmarked $3 billion for that initiative in 2026. By contrast, KeyBanc Capital Markets kept a Sector Weight rating on the shares, pointing to mixed viewpoints across the investment community while acknowledging Verizon's cost-cutting measures and plans for capital return.
Separately, Verizon is reportedly exploring potential candidates to replace Sowmyanarayan Sampath as the head of its consumer division. The company has approached possible replacements but, according to reports, has not yet conducted formal interviews. That personnel search is one of several ongoing strategic actions the company is undertaking as it seeks to translate recent operational momentum into sustained financial gains.
Taken together, the analyst adjustments and management moves reflect investor and industry attention on Verizon's ability to convert subscriber momentum into durable earnings and cash flow improvements through churn reduction, targeted cost cuts, and integration gains from the Frontier transaction.