Bank of America resumes Verizon's (VZ.US) "neutral" rating: acquisition of Frontier locks in tens of millions of fiber optic users, setting the tone for long-term growth fortunes.

According to the Intelligent Finance and Economics APP, Bank of America recently released a research report and resumed coverage of Verizon (VZ.US), giving a neutral rating with a target price of $45. The bank believes that the company has achieved a balance in high-end wireless user base, capital return, and fiber strategy, while its cable TV MVNO business can hedge financial risks from wireless competition and promotional efforts may be weaker than peers. The acquisition of Frontier Communications, expected to be completed in the first half of 2026, will add nearly tens of millions of fiber users, but will dilute free cash flow.