Communications major Verizon Communications Inc. (VZ) has announced that its private mobile edge computing solutions with AWS Outposts is now available for enterprise customers in the United States.
Following the news, shares of the company declined marginally to close at $51.91 in Monday’s extended trading session.
A cloud computing platform, Verizon 5G Edge with AWS Outposts is aimed at making the life of enterprises easier by providing high bandwidth and low latency connectivity to enable smooth operations of enterprise applications like intelligent logistics, factory automation and robotics.
The CEO of Verizon Business, Tami Erwin, said, “Through our partnership with AWS, we are helping customers unlock the true potential of 5G and edge computing which together will enable innovative applications involving computer vision, augmented and virtual reality, and machine learning. We are just scraping the surface of the new experiences that will be enabled by having 5G and edge compute on site.” (See Verizon stock chart on TipRanks)
Recently, Raymond James analyst Frank Louthan reiterated a Buy rating on the stock with a price target of $64, which implies upside potential of 23.3% from current levels.
The analyst said, “Verizon is seeing positive momentum with wireless and Fios broadband, and churn is trending favorably as well. Management is seeing less pressure from public sector as distance learning trends have been better than expected. Still, AT&T’s wireless promotional activity remains in full effect and management indicated that the switcher pool is currently down ~5-10%.
“As such, we are lowering our 3Q21 consumer wireless services revenue estimate from $14.147B to $13.996B, primarily due to what we now expect to be lighter retail wireless net adds in 3Q21. We are slightly raising our commercial wireless services revenue estimate from $3.087B to $3.171B. Altogether, we are taking our adds from 721K to 397K for wireless.”
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 4 Buys and 5 Holds. The average Verizon price target of $61.25 implies that the stock has upside potential of 18.1% from current levels. Shares have declined about 9.4% over the past year.