BUZZ-Street View: Verizon’s ground deployment is increasingly strengthened, but Starlink remains a focus of attention

October 27 - ** Verizon VZ.N on Monday raised its annual wireless user (link) growth forecast, thanks to a strong market response to its simplified plans

** The company also announced a more than $2 billion artificial intelligence infrastructure deal with Amazon Web Services (AWS)

** The median target price from 64 brokers covering the stock is $326, according to data compiled by the London Stock Exchange Group (LSEG)

The Starlink wild card

** Morgan Stanley (rated "Neutral", target price: $50) says VZ's strategic transformation is still ongoing, while concerns over rising rates, potential competition from Starlink, and AI-related pricing pressures continue to weigh on market sentiment

** MoffettNathanson ("Neutral", target price: $50) notes that the risks posed by SpaceX are currently more a cloud over market sentiment than an earnings threat, but the challenge is that it is difficult to predict how long such concerns will persist

** Scotiabank ("Outperform", target price: $50) believes that well-capitalized new entrants like SpaceX would have to compete aggressively on price to gain market share, which could pressure industry pricing power and valuations even before market entry

** TD Cowen ("Buy", target price: $55) states that VZ's simplified plan is gaining market traction, while its fiber integration strategy strengthens its ability to withstand potential competition from Starlink

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