VZ

Verizon Communications Inc

TMT


Presented:09/22/2020
Price:$59.82
Cap:$247.54B
Current Price:$43.74
Cap:$184.12B

Presented

Date09/22/2020
Price$59.82
Market Cap$247.54B
Ent Value$355.00B
P/E Ratio12.94x
Book Value$15.15
Div Yield4.11%
Shares O/S4,138.05M
Ave Daily Vol14,228,393
Short Int0.72%

Current

Price$43.74
Market Cap$184.12B
Verizon Communications, Inc. is a holding company, which engages in the provision of communications, information, and entertainment products and services to consumers, businesses, and governmental agencies. It operates through the Verizon Consumer Group (Consumer) and Verizon Business Group (Business) segments. The Consumer segment provides consumer-focused wireless and wire line communications services and products. The Business segment offers wireless and wire line communications services and products; video and data services; corporate networking solutions; security and managed network services; local and long distance voice services; and network access to deliver various Internet of Things (IoT) services and products. The company was founded in 1983 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Amazon Inc (AMZN), AT&T Inc (T), Dish Network Corp (DISH), Gartner Inc (IT), Reliance Industries ltd (RIL IN), T-Mobile Us Inc (TMUS), Verizon Communications Inc (VZ)

Highlights

The presenter is long shares of Verizon Communications Inc (VZ) ahead of December’s mid-band spectrum C-band auction for 5G. According to the presenter, VZ has spent years building up for this opportunity and he believes they’ll get 50% - 60% of the licenses being auctioned off. As of right now, VZ generates a little less than $50B in EBITDA, and will spend between $30B - $40B on acquiring this mid-band spectrum. Based on three primary drivers, 1) wireless market share gains, 2) the ability to charge a price premium, and 3) VZ’s potential to be a leader in IoT, he estimates that VZ will be able to generate $20B+ in annual incremental EBITDA. This also creates a virtuous cycle where VZ experiences technology growth, EPS growth, and can establish a moat vs. peers. From here, he has a price target of ~$120/share or 100% upside. 

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Idea Discussion

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