UBS is holding steady with its Neutral rating on Verizon Communications (NYSE:VZ) and maintains a $45 price target, following the telecom giant’s launch of two new customer-focused initiatives aimed at breathing life into its postpaid wireless business.
Verizon unveiled a three-year price lock for both new and existing postpaid customers, alongside a Free Phone Guarantee that rewards users with upgraded devices under certain conditions. UBS sees this as a calculated move to enhance subscriber acquisition and retention, especially as Verizon looks to close the perceived value gap with rivals.
This is Verizon’s third major initiative targeting its consumer segment, following revamped sales incentives, the customizable MyPlan, and MyHome. Over half of postpaid customers are now on MyPlan, reflecting growing adoption of the flexible pricing model.
UBS believes these efforts will help boost gross additions and reduce churn, and that the financial impact is likely already factored into Verizon’s 2025 guidance. The Free Phone Guarantee is structured with tiered eligibility, offering top-tier devices only on premium unlimited plans with eligible trade-ins.
In addition to hardware incentives, Verizon is expanding value through streaming perks, satellite messaging, and the future rollout of voice and broadband upcharges once those features are ready.
UBS views these moves as strategically sound, but not enough yet to shift its cautious stance, citing a balanced risk/reward profile at current valuation levels.