11:54 AM EDT, 04/02/2024 (MT Newswires) -- Verizon Communications ( VZ ) is likely to report wireless service revenue growth of 3.1% in Q1 and continue the momentum in gross additions, RBC Capital Markets said in a note.

Price hikes in wireless are expected to increase churn in Q1, but also drive $100 million per month of incremental revenue going forward, RBC analysts Jonathan Atkin and Bora Lee said.

"We see churn management as one of the company's key priorities for FY24," the analysts said. They kept their sector perform rating while raising their price target to $40 from $36, expecting cost efficiency progress beyond FY25.

The analysts expect Verizon's Q1 revenue to reach $33 billion and remain relatively flat year-over-year, and project adjusted earnings per share of $1.12, in line with consensus estimates, and a 7% year-over-year decline.

The company is scheduled to report its Q1 results on April 22.

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