Shares of Verizon Communications Inc. (VZ) fell 4.3% to $57.70 on Monday after JPMorgan Chase downgraded the telecommunications giant to neutral from overweight.
JPMorgan analyst Philip Cusick wrote that while he likes Verizon's "consistent and improving execution," the combination of a new management team and reporting lines with the stock's 17% year-to-date increase make the risk/reward less compelling than peers AT&T Inc. (T) and Comcast Corp. (CMCSA) , according to The Fly.
However, Cusick said that he still sees the stock increasing 2.7% to his $62 target in the next year along with the 4% dividend yield.
Verizon Communications closed up 1.43% to $60.30 on Friday.
Separately, Verizon and Samsung Electronics Co. announced plans on Monday to release a 5G smartphone in the first half of 2019. The two companies have not provided any details about what the device will look like, what it will be called or how much it will cost. The companies will unveil a proof of concept at the annual Qualcomm Snapdragon Technology Summit in Maui this week, Samsung said in a statement. The phone features Qualcomm's mobile processor, and the Snapdragon X50 5G NR modem and Qualcomm antenna modules.
Verizon launched the world's first commercial 5G service in October when 5G Home went live in Houston, Indianapolis, Los Angeles and Sacramento. Verizon 5G mobility service will go live in early 2019.