A customer stands at a counter inside a Verizon Wireless retail store in Washington, D.C.
Andrew Harrer | Bloomberg | Getty Images
Shares of Verizon fell on Monday following a downgrade from Citi citing potential lower wireless pricing in the future.
Citi downgraded the stock to neutral from buy and maintained its $62 price target. Verizon shares fell more than 1% in premarket trading Monday and closed the day down 0.7%.
“Verizon’s consistently strong operating performance in the wireless category may not be enough to drive further multiple expansion at a time when investors are more likely to question the competitive environment and long-term risks to pricing and margins,” Citi’s Michael Rollins wrote in a note to clients.
The wireless carrier space is narrowing with a potential merger between T-Mobile and Sprint on the horizon. As new competitors come into the space without legacy pricing and with different margin goals, opportunities to expand margins are shrinking for Verizon,…