After Verizon Communications (VZ) reported worse than expected fourth quarter earnings, a number of Wall Street analysts have downgraded the stock to neutral-equivalent ratings, citing a weaker outlook as industry competition continues to be a headwind.

MOVING TO THE SIDELINES: In a note to investors this morning, RBC Capital analyst Jonathan Atkin downgraded Verizon to Sector Perform from Outperform, citing mixed fourth quarter results and saying that the 2017 outlook reflects a "challenging" fundamental backdrop in light of continuing industry competition and the threat of margin erosion from Apple's (AAPL) iPhone refresh. Furthermore, the analyst told investors that he sees more attractive carriers in other large-cap carrier sectors, such as cable. His peer at Raymond James also cut his rating for Verizon to Market Perform on similar concerns. Analyst Frank Louthan pointed out that the wireless service and internet provider's outlook appears to push out its successful application of its strategy into 2018. While he acknowledged that the potential for a catalyst outside of tax reform is a "significant possibility," Louthan noted that this is muted with a longer shift to wireless metric stability and strategic success with new businesses. It appears that the impact of newer businesses at Verizon may not be offsetting competitive pressures to the extent expected, he argued. Moreover, Louthan said he believes the stock's current valuation, at a discount to the large cap carrier peer group, reflects the "no growth" outlook and is supported by its stable dividend. In a note of his own, FBR Capital analyst David Dixon also downgraded Verizon to Market Perform, citing the company's "lackluster" fourth quarter results and "weak" growth outlook. The analyst thinks T-Mobile (TMUS) is affecting Verizon more than expected and that Sprint (S) could take more share than Verizon anticipates in 2017.

VERIZON OPTIONS BEYOND DISH: Meanwhile, Citi analyst Jason Bazinet removed DISH Network (DISH) from his firm's Focus List, while keeping a Buy rating on the shares, saying that Verizon may have more options to acquire spectrum outside of acquiring DISH under a Trump administration. Divestitures from a potential Sprint/T-Mobile merger could allow Verizon to acquire spectrum, the analyst contended.

PRICE ACTION: In morning trading, shares of Verizon have slipped about 1% to $49.72, adding to yesterday's losses following disappointing quarterly results. Over the last two sessions, Verizon shares are now down more than 5%.