Bernstein SocGen Group has assigned a Market Perform rating to Verizon Communications (NYSE:VZ), setting a price target of $48. The rating reflects the challenges and opportunities ahead for this telecom leader. Despite competitive pressures from challengers like T-Mobile and cable MVNOs impacting market share, Verizon remains at the forefront.

The company’s share of postpaid net additions has been relatively weaker compared to major mobile operators. However, new management has displayed promising indicators of improvement, showing positive growth trends in key operational metrics.

Fixed Wireless Access (FWA) has emerged as a significant growth driver for Verizon. Since its launch in 2021, FWA has exceeded expectations, achieving the initial subscriber target of 4-5 million a year ahead of schedule. The company now projects to double this subscriber base over the following five years, potentially enhancing margins and bolstering overall profitability in the near term.

On the flip side, Verizon’s broadband expansion faces constraints due to its stagnant fiber footprint, which has not matched the pace of competitors like AT&T. This situation limits bundling options and impacts opportunities for incremental wireless gains associated with broadband services. The anticipated acquisition of Frontier may help address these challenges, although the results will likely not be seen until the deal closes in 2026.