Verizon (VZ) Business has launched its first commercial private 5G network solution in the U.S., allowing corporate and public sector customers to bring 5G services to their premises. The new offering expands Verizon’s private networks solution, which includes On Site LTE.
“On Site 5G opens the commercial floodgates for the promises of 5G Ultra Wideband, allowing large enterprises and public sector organizations to custom tailor a 5G experience for any premises that demands it,” said Verizon Business Chief Revenue Officer, Sampath Sowmyanarayan.
Verizon said On Site LTE customers can easily upgrade to On Site 5G and maintain interconnection with existing applications and networks. (See Verizon stock analysis on TipRanks)
Verizon’s private 5G network keeps cellular traffic on the customers’ premises but allows authorized remote user access to company applications.
See: Best 5G Stocks To Buy in 2021
The company believes that its On Site 5G service will give businesses and public sector organizations more tools to improve operational efficiency and speed up their digital transformation. Verizon believes that On Site 5G will allow enterprise customers to take advantage of developments in technologies such as the Internet of Things (IoT), artificial intelligence/machine learning (AI/ML), and real-time analytics.
HSBC analyst Sunil Rajgopal reiterated a Hold rating on Verizon stock but raised the price target to $62 from $58. The analyst’s new price target indicates 8.13% upside potential.
Rajgopal noted a trend in which telecom companies are dropping businesses for which they have little expertise. The analyst cited AT&T’s (T) spinoff of the WarnerMedia unit as an example.
Consensus among analysts is a Hold based on 2 Buys and 8 Holds. The Verizon average analyst price target of $60.57 implies 5.63% upside potential to current levels.
According to TipRanks’ Hedge Fund Trading Activity tool, confidence in Verizon is currently Very Positive. The cumulative change in holdings across all 24 funds that were active in the last quarter was an increase of 17.7 million shares.
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