Goldman Sachs Group, Inc.: Verizon (VZ.US) Q2 financial report shows strong overall performance, reiterates "buy" rating.

Goldman Sachs Group, Inc. released a research report, reiterating a "buy" rating on Verizon (VZ.US) with a target price of $52. Goldman Sachs Group, Inc. stated that Verizon's overall financial indicators performed well in the past quarter, and its earnings guidance for 2025 has been adjusted upward. Goldman Sachs Group, Inc. believes that the trends in the wireless business are better than expected, despite management not reiterating guidance for improving net new user metrics. They think that Verizon's stock price may perform well in the short term, as investors have previously been more pessimistic and concerned about the company's slowing growth. Positively, Goldman Sachs Group, Inc. finds Verizon's strong EBITDA and free cash flow encouraging, indicating the company's ability to improve profitability even in the face of high wireless user churn rates and subsidies. However, they note that wireless market competition remains fierce and the broadband market overall is weak. They also emphasize that Verizon's performance in the business sector has significantly improved, which will help the company achieve more stable financial growth and greater financial flexibility in the future. Goldman Sachs Group, Inc. also stated that the impact of Verizon's second quarter financial report on the industry is still uncertain, as wireless user growth trends are better than expected but broadband net new user data (including fiber and fixed wireless users) is lower than expected. They expect that Verizon's financial report will not have an impact on tower stocks such as American Tower Corporation (AMT.US), Crown Castle Inc. (CCI.US), and SBA Communications Corp. Class A (SBAC.US) given that the company's capital expenditure guidance has not changed. As of Tuesday's closing on the U.S. stock market, Verizon rose by 1.11% to $42.96. The stock has accumulated a 13% increase so far this year.