Morgan Stanley analyst Simon Flannery upgraded Verizon Communications (VZ) to Overweight from Equal Weight with a price target of $44, up from $41, which offers over 20% total returns. Following the stock’s significant underperformance in 2022, Verizon trades at a “historically attractive valuation on an absolute and relative basis,” Flannery tells investors in a research note. The analyst sees room for improved operational performance in 2023 and the company’s free cash flow ramping 45% by 2024. He switched his preference to Verizon from AT&T, a stock he downgraded this morning to Equal Weight.
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