Verizon shares will struggle to beat the market due to fears over rising inflation, according to one Wall Street firm.

MoffettNathanson lowered its rating on the company to neutral from buy, predicting investors will shift to growth-oriented stocks instead.

"With lower tax rates (and with tight labor markets and globally synchronized growth) comes a materially greater risk of inflation. The narrative of yield rotation has already begun; the playbook for the time being will be a relatively simple one: sell yield," analyst Craig Moffett wrote in a note to clients Tuesday. "Even equity income managers are likely to rotate – in their case from dividend yield to dividend growth."