Verizon Communications has settled its contract dispute with multimedia company Hearst Television, Reuters reported citing a statement by the company’s representative.
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Notably, Verizon (VZ) had earlier warned its Fios customers that the Hearst channels might go dark from Jan. 1, due to “the unreasonably high rates” demanded by the broadcaster group. Though the terms of the deal were not disclosed, it was reported that Hearst Television has started broadcasting its channels on the telecom giant’s fiber-optic networks in the US, including Boston and Baltimore since Jan. 1.
Verizon’s representative said in an emailed statement that, “Verizon Fios has been able to reach an agreement with Hearst Television.” According to Verizon’s representative, the settlement agreement also covers markets in Manchester, New Hampshire, and the Pennsylvania cities of Harrisburg and Pittsburgh, in addition to Boston and Baltimore.
Verizon Fios customers can view Hearst TV’s channels like WBAL-NBC in Baltimore, WGAL-NBC in Harrisburg, WTAE-ABC in Pittsburgh, WCVB-ABC and WMUR-ABC in Boston/Manchester. (See VZ stock analysis on TipRanks)
On Dec. 2, MoffettNathanson analyst Craig Moffett upgraded the Verizon stock to Buy from Hold and lifted the price target to $66 (12.3% upside potential) from $59. The analyst said that “with an attractive – and apparently safe – dividend yield in a yield-starved market, we believe Verizon’s total return prospects are sufficient to warrant our more constructive outlook.”
Meanwhile, the stock scores a cautiously optimistic outlook from the rest of the Street. The analyst consensus of a Moderate Buy is based on 4 Buys, 7 Holds and 1 Sell.
The average price target of $62.33 implies upside potential of about 6.1% to current levels. Shares were down by 4.3% in 2020.
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