Scotiabank cuts target for Verizon Communications stock to USD 51.50

Published on 10/06/2026 at 17:08 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

The rating stayed Sector Outperform on October 2, 2026. Verizon Communications stock had a USD 189.7 billion market value on October 6, 2026.

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Verizon Communications (ISIN US92343V1044) faces a lower analyst target after MarketBeat reported on October 2, 2026 that Scotiabank cut its target from USD 52.50 to USD 51.50 while retaining a Sector Outperform rating. The move puts the analyst view below the USD 56.00 target published by TD Cowen in July, but above the USD 44.00 low in the current analyst range.

Cash flow reaches USD 6.4 billion

In the second quarter of 2026, Verizon generated USD 6.40 billion in free cash flow, up 24.40 percent from the year-earlier quarter, Zacks reported on September 21, 2026. The company raised its full-year 2026 free cash flow growth outlook to 9.00 percent to 10.00 percent, while fiber expansion and wireless network upgrades continue to require substantial investment.

The cash figure matters because it strengthens Verizon's capacity to fund network investment and shareholder returns while the analyst debate remains centered on growth. Zacks also reported that adjusted EBITDA rose 7.20 percent year over year to USD 13.70 billion in the second quarter, lifting the adjusted EBITDA margin to 40.10 percent.

Quarterly results arrive October 26

Verizon's second-quarter 2026 revenue was USD 34.25 billion, down 0.70 percent year over year, while adjusted earnings per share reached USD 1.30 versus a USD 1.27 consensus estimate, according to MarketBeat. The contrast is clear: cash generation improved sharply, but revenue remained under pressure from weaker wireless equipment sales.

Verizon said on September 28, 2026 that it will report third-quarter 2026 results on October 26, 2026, with the webcast beginning at 8:30 a.m. ET. That date gives investors the next scheduled checkpoint for the raised cash flow outlook and service-revenue trajectory.

Market value stays tied to income

Verizon had a market capitalization of USD 189.7 billion on October 6, 2026, based on the latest market data. Its 52-week range was USD 38.39 to USD 51.68, placing the valuation question alongside the company's 6.20 percent dividend yield cited in recent market coverage.

The central trade-off is measurable: second-quarter free cash flow grew 24.40 percent year over year, while revenue declined 0.70 percent over the same period. The October 26 results will show whether cash conversion can continue to offset slower top-line growth and the lower Scotiabank target.