According to a new Morningstar research report, Verizon Communications stock has a fair value estimate of $54, implying an upside of more than 23% from its last close.

  • Morningstar maintained a ‘Narrow Economic Moat’ rating on the company and a ‘Medium’ uncertainty assessment. 
  • While the analyst expects Verizon’s wireless service revenue to remain broadly flat in 2026, over the following five years, it forecasts wireless service to grow by around 2% annually, accelerating to roughly 3% in 2028.
  • However, the report also noted several risk factors, including regulatory risks, future spectrum auctions, and technological advances that could strengthen rivals.

Shares of Verizon Communications Inc. (VZ) fell 0.37% premarket on Monday after closing up nearly 6% higher on Friday last week. 

According to a new Morningstar research report, the telecommunications giant’s shares remain attractively valued despite a more challenging competitive environment. 

As per the analyst, VZ stock has a fair value estimate of $54, implying an upside of more than 23% from its last close. Morningstar maintained a ‘Narrow Economic Moat’ rating on the company and a ‘Medium’ uncertainty assessment. 

Analyst Rationale On VZ Stock

Morningstar noted that Verizon remains the largest U.S. wireless carrier, serving roughly 94 million postpaid and 20 million prepaid phone customers. Wireless operations generate about 75% of service revenue and almost all of the company’s operating income, while the acquisition of Frontier Communications has expanded Verizon’s fiber footprint and strengthened its ability to bundle broadband and wireless services.

While the analyst expects Verizon’s wireless service revenue to remain broadly flat in 2026, over the following five years, it forecasts wireless service to grow by around 2% annually, accelerating to roughly 3% in 2028 as customers migrate to new plans. 

The analyst also noted Verizon’s strong network quality across wireless and fixed-line technologies, and the strong brand reputation that has attracted a large and loyal customer base. “In the wireless business, the firm holds roughly 35% of the US postpaid phone market, claiming about 10% more customers than T-Mobile and 25% more than AT&T. Leading scale enables Verizon to generate the highest margins and returns on capital in the industry,” it said. 

Morningstar also noted that Verizon shares “offer a fantastic dividend yield. The payout consumes less than 60% of free cash flow, providing plenty of cushion to maintain this income stream for shareholders.”

However, the report also noted several risk factors, including regulatory risks, future spectrum auctions, and technological advances that could strengthen rivals such as AT&T Inc. (T), T-Mobile Inc. (TMUS), Comcast Corp. (CMCSA) and Charter Communications (CHTR). The analyst also highlighted competition from satellite technology companies like SpaceX (SPCX). 

VZ Stock: Retail Stance

On Stocktwits, retail sentiment around VZ stock was ‘bullish’ at the time of writing amid ‘high’ message volumes. 

One user said, “$VZ looks like there is still more upside room.”

Another user said, “$VZ Talk to any network engineer, the fiber network will not be threatened by Sats..its physics, in fact its never been more valauble.”

VZ stock has gained more than 14% in 2026. 

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