KeyBanc downgrades Verizon on limited room for EBITDA growth

KeyBanc last night downgraded Verizon (VZ) to Sector Weight from Overweight without a price target. The company’s Q3 results were below expectations and there is limited room for EBITDA acceleration in 2025, the analyst tells investors in a research note. The firm sees likely declining free cash flow growth and says Verizon’s potential acquisition of Frontier Communications (FYBR) is a poor capital allocation decision and limits a bull case of share repurchases. KeyBanc will look for a pullback in the stock’s valuation or upside to expectations to become more constructive on the shares.