Tigress Financial Partners is turning bullish on Verizon Communications Inc. (NYSE: VZ) and staying bullish on its rival AT&T Inc. (NYSE: T).

The Verizon, AT&T Analyst: Ivan Feinseth upgraded Verizon from Neutral to Buy and maintained a Buy rating on AT&T’s stock.

The Verizon Takeaways: Verizon ended 2020 with a full-year revenue decline of 2.71% at $128.29 billion, but the company is on track to reverse losses and generate revenue of $134.59 billion in 2021, Feinseth wrote in the upgrade note.

Leading the revenue growth will be the company’s continued 5G rollout and continued growth in the wireless market, he said.

The late 2020 acquisition of TracFone for $6.3 billion will add 21 million new customers to Verizon’s network and greater exposure to the prepaid segment, which performs well during a recession, the analyst wrote.

Meanwhile, Verizon boasts an attractive balance sheet with $19.78 billion in excess cash, and this can be used for ongoing capital investments, new acquisitions, dividend increases and a resumption in share purchases that were paused in 2015, according to Tigress. Read more