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Verizon Communications Inc. (VZ) - Get Verizon Communications Inc. Report is still the top player in telecommunications, according to analysts at Nomura who maintained their "buy" rating and $65 price target on the company in a note Thursday, Oct. 4. 

Nomura analyst Jeffrey Kvaal said he expects the company to report above-consensus postpaid phone net adds when Verizon reports its third-quarter results on Oct. 23. However, Nomura expects the company's churn rate, which had been at record low levels, to rise slightly due to increased competition from rival T-Mobile Inc. (TMUS) - Get T-Mobile US, Inc. Report .

"We expect Verizon to report postpaid phone net adds slightly above consensus of 150K driven by strong gross adds. We attribute the gross add performance to the ongoing trend of pre-to-postpaid migrations as well as weakness at Sprint (S) - Get SENTINELONE, INC. Report , which recently indicated it would report a net loss in postpaid phone subscribers for the quarter," Kvaal wrote. 

As for the churn rate, or the percentage rate that customers end their subscriptions, Nomura expects Verizon to report a churn of 1%, an increase of 3 basis points year over year. 

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"We note, however, we still expect Verizon to report industry low postpaid and postpaid phone churn for the quarter," Kvaal said. 

Shares of Verizon were down 0.5% on Thursday.

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