Oppenheimer believes Verizon Communications stock is now too cheap to ignore.

On Wednesday, analyst Timothy Horan raised his rating on Verizon (ticker: VZ) stock to Outperform from Perform, citing its low valuation. He also established a $50 price target for the stock.

"The price is right after years of underperformance," Horan wrote. "We previously downgraded in 2/25/21, because the company overpaid for spectrum and [was] late to mid-band 5G builds, which led to customer defections, weaker balance sheet, and substantial capex investment. These factors are now reversing."

Verizon stock is up 0.4% to $38.90 in Thursday trading.

In July, the company lowered its full-year earnings-per-share guidance to a range from $5.10 to $5.25, down from its prior forecast range from $5.40 to $5.55. Its stock is down about 25% this year.

The analyst cited how Verizon is trading at just 7.5 times his 2023 earnings-per-share estimate and has an attractive 6.6% dividend yield. Horan wrote that the company can boost subscriber numbers with its new plans—including its inexpensive Welcome Unlimited plan and higher-end Apple One Unlimited plan. Horan is also optimistic Verizon can catch up to T-Mobile US (TMUS) in improving the quality of its 5G coverage and performance.

The "successful bundling of its burgeoning fixed wireless-access service, [is] an unequivocal hit where we have a variant positive view versus detractors," he wrote, mentioning Verizon's progress with its internet access service for homes and businesses.