Verizon Receives a Vote of Confidence as Goldman Sachs Raises Price Target

Verizon Communications (NYSE:VZ | VZ Price Prediction) has been on a meaningful run, with shares up 2.78% over the past month and up nearly 25% year-to-date. The stock is pushing towards its 52-week high of $51.68, which it set earlier in March. Shares are currently trading around $50.60.

Most Wall Street analysts are clustering around a consensus target of $50.76, with the majority rating the stock a Hold. Goldman Sachs analyst Michael Ng just raised his price target to $55 from $50, maintaining a Buy rating, implying meaningful upside from the current price of $50.91 and sitting above the Street consensus. Can VZ realistically reach $55 by end of 2026?

Michael Ng’s $55 VZ Prediction

Ng’s upgrade centers on a structural shift in how Verizon will report its business starting in Q1 2026. The company is altering subscriber-level disclosures to emphasize holistic KPIs like EBITDA, free cash flow, and customer accounts amid slowing postpaid phone growth. That reframing matters: Verizon generated $19.822 billion in free cash flow in FY2024, and its EBITDA stands at roughly $50 billion. For income-oriented investors, these are the metrics that sustain the dividend and support long-term compounding.

Key Drivers of VZ Stock Performance

1. Fixed Wireless Access growth: FWA revenue surged 51.6% year-over-year to $611 million in Q4 2024, with the subscriber base at approximately 4.6 million. Verizon is targeting 8 to 9 million FWA subscribers by 2028, positioning broadband as a durable compounding engine.
2. Dividend reliability and growth: The quarterly dividend was raised to $0.7075 per share, with an annualized yield of 5.7%. Verizon has maintained a consistent dividend growth track record, supporting income-focused strategies.
3. Frontier acquisition and fiber convergence: The pending Frontier deal, combined with AI enablement and new satellite partnerships, is designed to expand network reach and protect margins. CEO Hans Vestberg stated, “It’s only going to get better this year and beyond, as we have continued to strengthen Verizon with the pending Frontier acquisition, new satellite partnerships, and ongoing AI enablement, which we expect will enhance and broaden our network for everybody we serve.”

What Will It Take for VZ to Reach $55?

With approximately 4.22 billion shares outstanding, a $55 price would place Verizon’s market capitalization well above its current $213.3 billion. Reaching that level likely requires three things: continued EBITDA expansion in line with 2025 guidance of 2.0% to 3.5% growth, free cash flow sustaining above $17.5 billion, and a smooth Frontier integration without material balance sheet stress. Industry trends are expected to be stable for postpaid net additions, though postpaid ARPUs face pressure from competitive pricing, back-book cuts, and targeted discounts, all of which Verizon must navigate carefully to protect margins.

The primary risk remains Verizon’s $144 billion debt load, which leaves limited room for error if interest costs rise or Frontier integration creates friction. Goldman’s $55 target is grounded in a coherent EBITDA and free cash flow framework that rewards patient, income-focused investors willing to let Verizon’s yield and network investments compound over time.