4 big analyst picks: Citi upgrades Verizon, sees better days for telecom stocks By Investing.com

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4 big analyst picks: Citi upgrades Verizon, sees better days for telecom stocks

The bank noted that the competitive environment in the wireless industry is showing signs of stabilization, which should contribute to improved operational performance.

“We see a few factors that point towards a stabilizing wireless competitive landscape. Cable share gains have not been a zero-sum game,” stated Citi, highlighting the recent targeted pricing increases and longer device holding periods, which contribute to reducing upgrade costs and stabilizing churn.

According to Citi, better forward FCF is expected to help lower net debt leverage and support high dividend yields.NextEra Energy Partners shares surged more than 4% yesterday after Raymond James upgraded the company to Outperform from Market Perform with a price target of $60.00. The key driver behind the upgrade is the company's current dividend yield of 7.0%, which is notably higher than theby 290 basis points. This substantial spread is wider than the long-term median of 170 basis points.

"Only once during NEP’s decade-long history as a public company did this spread ever surpass 300 bp, and only briefly – this was, in fact, during the initial COVID crisis. We are mindful that the macro interest rate environment may continue to pressure all rate-sensitive equities, but this stock is not priced for perfection."

 

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