NEW YORK (TheStreet) -- Verizon Communications (VZ) shares are down 1.96% to $46 on Wednesday after a Morgan Stanley analyst note about the telecom industry said that the pricing wars smaller carriers are waging against larger carriers like Verizon and AT&T (T) could hurt those companies' bottom lines.
As a result of the aggressive nature of the competition between the companies, Morgan Stanley analyst Simon Flannery lowered Verizon's 2015 EBITDA guidance to $7.945 billion from $8.39 billion.
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"Going forward, our estimates reflect our concerns that, while the current promotions will end shorty, we may only be in the early innings of a wireless war," said Flannery.
One cue, T-Mobile (TMUS) launched its new unlimited data family plans today, selling two lines of unlimited data, airtime minutes and texts for $100. T-Mobile's plan undercuts a similar plan from Verizon by $80 per month.
TheStreet has further coverage of the telecom industry including Jim Cramer's take on the sector here.
TheStreet Ratings team rates VERIZON COMMUNICATIONS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERIZON COMMUNICATIONS INC (VZ) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, compelling growth in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."