NEW YORK (TheStreet) -- Shares of Verizon Communications (VZ) are trading lower by 1.94% to $47.16 in Friday's afternoon trading session on reports that the possible merger of T-Mobile (TMUS) and Dish Network (DISH) could hurt the broadband and telecommunications company the most, The Wall Street Journal reported.
"A merger could quickly catapult Dish into the wireless arena and strengthen T-Mobile's distribution, product bundling capabilities, and network capacity," Citigroup (C) analyst Michael Rollins said, according to the Journal.
Regarding the merger, Dish has two options: buy T-Mobile U.S. or sell to Verizon, Rollins added.
However, if Verizon buys Dish, Verizon could get "over-the-top video capabilities and a large base of linear video customers from which it can extract programming scale and content for its emerging over-the-top platform," the Journal said.
Separately, TheStreet Ratings team rates VERIZON COMMUNICATIONS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERIZON COMMUNICATIONS INC (VZ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."