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Shares of telecom giant Verizon Communications (VZ) are off more than two.five% on Tuesday following downgrades by two Wall Street analysts. Following returning more than 14% because Barron’s suggested getting it on June 16, the stock now seems pretty valued, offered the existing wireless atmosphere and longer-term prospects for the telecom market.

According to MoffettNathanson analyst Craig Moffett, a proposed merger among Sprint (S) and T-Mobile US (TMUS) could place an finish to the competitive pricing wars that have triggered income in the wireless-solutions market to decline in 14 of the previous 17 quarters because 2014. Verizon, as the biggest player and with 64% of its income coming from wireless solutions in the most-current quarter, has the most to obtain from enhancing pricing that market consolidation could supply.

Michael Nagle/Bloomberg

But even without having the merger, subscription costs have begun to enhance in 2018, as Sprint and T-Mobile mostly have scaled back “ultra-aggressive” pricing on limitless and bundled plans meant to win new buyers. Wireless-service income has returned to development, escalating 1.eight% in the most-current quarter market-wide and even much more for Verizon, at three.7%, at the quickest pace because the initial quarter of 2014. Margins and income have followed.

“A 3-player marketplace, it was believed, would be the remedy for a seemingly endless value war,” wrote Moffett in his report published Tuesday. “Well, do not appear now, but the wireless value war that started in 2014 seems to be more than. Practically just about every vital metric in wireless has taken a turn for the improved. The largest beneficiary has been Verizon.”

Appropriately, investors have celebrated the enhanced atmosphere and piled into Verizon shares more than the previous handful of months. For Moffett, that leaves small area for additional upside, and he downgraded the stock from a Purchase to a Neutral rating though preserving his $56 value target, slightly ahead of shares’ current $53.00.

Barclays analyst Kannan Venkateshwar likewise sees Verizon’s existing valuation following its current rally appropriately taking into account improvements in the competitive atmosphere. In a report Tuesday morning, Venkateshwar downgraded the stock to Equal-Weight from Overweight and dropped his value target to $50 from $56.

“While we are optimistic about Verizon’s close to-term development trajectory, we think this is currently reflected in valuations,” he wrote.

Venkateshwar’s concentrate going forward will be on Verizon’s 5G efforts and the capital expenditures needed to roll out a national network. He noted that Verizon has stayed out of the costly race to obtain content material that telecom peers like AT&T (T) and Comcast (CMCSA) have engaged in.

“This of course does not imply that the enterprise will keep out of the M&A fray,” Venkateshwar wrote, identifying Dish Network (DISH) and Charter Communications (CHTR) as prospective synergistic acquisitions. He added, “[W]e think if Verizon was to engage in offers, it would probably be for spectrum or cable assets rather than content material assets.”

Verizon hasn’t guided what its capex outlays will be beyond the finish of 2018. But with the 5G wireless expansion anticipated subsequent year, Venkateshwar believes that it may well accelerate its investments, additional capping medium-term stock gains and prompting his value target reduce.

Verizon shares have now returned 13% more than the most recent 52 weeks, compared with 17% for the S&P 500 and a 13% loss for AT&T. Speaking of dividends, Verizon gives a generous four.four% yield for these prepared to stay on the line.

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