BTIG Downgrades Verizon on Wireless Concerns

BTIG analyst Walter Piecyk downgraded Verizon from buy to neutral, despite continuing growth and industry-leading low churn. “Despite all these positive dynamics in wireless, which represents over 80 percent of Verizon’s EBITDA, its stock has done little over the past 2-3 years and it is increasingly difficult to see how our outlook for the company could improve further to deliver upside to existing investor expectations,” Piecyk wrote investors Tuesday. He also expressed concern about Verizon’s overall wireless network strategy: “Verizon management appears to be digging in their heels on a wireless network strategy reliant on small cell densification and the future use of higher-band spectrum, even though Verizon does not own that spectrum and it has largely been considered to be unusable for mobile communications. This adds risk to estimates.” Verizon shares closed up 10 cents Tuesday at $45.55.