- Verizon (VZ +2.3%) has a number of M&A prospects ahead that might prove as catalysts to improve its position, Citigroup writes in an upgrade to Buy.
- The market may be getting cautious on the telecom's upside potential, but a prospective lighter regulatory touch from the incoming government could set up a number of scenarios in which Verizon could benefit, says analyst Michael Rollins.
- Aside from its plans to acquire the core of Yahoo (YHOO +0.6%) early this year, Verizon could target Dish Network (DISH +3%), Rollins says. But strategic ties could be built between Verizon and Comcast (NASDAQ:CMCSA) as well as with Charter Communications (CHTR -0.8%), Reinhardt Krause notes.
- "Verizon is pursuing growth in three categories (Internet of Things, digital media, and 5G) that are somewhat small today, but can eventually contribute to revenue growth and value," Rollins writes. "We don't believe Verizon is getting credit for the investments to date and see a bull case emerging for 5G."
- Rollins has a price target of $60, implying 10% upside.