Verizon Communications Upgraded to Buy at Deutsche Bank (VZ)
Verizon Communications (NYSE:VZ) was upgraded by Deutsche Bank from a “hold” rating to a “buy” rating in a research note issued on Friday, TheFlyOnTheWall.com reports. The firm currently has a $56.00 price target on the stock, up from their previous price target of $49.00. Deutsche Bank’s target price indicates a potential upside of 14.52% from the stock’s previous close.
The analysts wrote, “(1) Wireless operating momentum looks sustainable; the opportunity to grow revenue within the existing base far exceeds the threat of stiffer competition. (2) 2013- 2014 looks like a key inflection point for both wireline revenues and margins due to sustainable growth in FiOS and diminishing headwinds in Enterprise. (3) Valuation has compressed significantly on both an absolute and relative basis.” Verizon’s rising smartphone penetration will be the primary driver in revenue growth over the next 2 years. “The carrier’s smartphone penetration rate has been climbing by roughly 3% per quarter, which implies that this trend should continue for another ~10 quarters. We believe that this trend is by far the most important driver of projected wireless service revenue growth over the next 2-3 years. This is because we believe that smartphone subs continue to generate roughly 2x the average revenue per user of feature phone subs due to the additional data charges.”
Shares of Verizon Communications (NYSE:VZ) traded up 2.34% during mid-day trading on Friday, hitting $50.045. 17,483,402 shares of the company’s stock traded hands. Verizon Communications has a 52 week low of $40.51 and a 52 week high of $54.31. The stock has a 50-day moving average of $47.17 and a 200-day moving average of $49.6. The company has a market cap of $143.2 billion and a P/E ratio of 89.56. Verizon Communications also was the target of unusually large options trading on Wednesday. Investors acquired 30,534 call options on the company. This represents an increase of 121% compared to the typical daily volume of 13,838 call options.
Verizon Communications (NYSE:VZ) last announced its earnings results on Thursday, October 17th. The company reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.75 by $0.02. The company had revenue of $30.28 billion for the quarter, compared to the consensus estimate of $30.17 billion. During the same quarter in the previous year, the company posted $0.64 earnings per share. The company’s revenue for the quarter was up 4.4% on a year-over-year basis. Analysts expect that Verizon Communications will post $2.75 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at BMO Capital Markets cut their EPS estimates on shares of Verizon Communications in a research note on Tuesday. They now have an “outperform” rating and a $55.00 price target on the stock. Separately, analysts at TheStreet reiterated a “buy” rating on shares of Verizon Communications in a research note to investors on Tuesday. Finally, analysts at TheStreet reiterated a “buy” rating on shares of Verizon Communications in a research note to investors on Tuesday, October 1st. One investment analyst has rated the stock with a sell rating, thirteen have given a hold rating, nineteen have issued a buy rating and one has given a strong buy rating to the company’s stock. Verizon Communications has an average rating of “Buy” and a consensus price target of $55.98.
Verizon Communications Inc (NYSE:VZ) is a holding company.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.