Analyst Note| Michael Hodel |
Verizon’s fourth-quarter results and 2023 outlook fell modestly short of our expectations. We’ve trimmed our revenue and margin forecasts, moving our fair value estimate down to $57 from $59. We continue to believe the shares are very attractive, trading at around 10 times our 2023 free cash flow expectation. We expect the firm can move margins and cash flow higher beyond this year as network projects are completed and the promotional environment eases somewhat.