Deutsche Bank Downgrades Verizon Communications (VZ) to Hold; Valuation
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Price: $50.05 -2.91%
Rating Summary:
15 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
15 Buy, 14 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade VZ Now!
Deutsche Bank downgraded Verizon Communications (NYSE: VZ) to Hold.
Deutsche analyst says, "We are downgrading Verizon to HOLD, primarily due to valuation. While we expect a strong year for wireless (iPhone, 4G), we believe this is mostly reflected in the stock, which is now at a steep premium to AT&T (NYSE: T), the S&P 500 and historical levels. For example, VZ is trading at 15.4x our above-consensus 2011 EPS estimate vs. T at 11.4x and the S&P 500 at 13.7x. We therefore believe pot'l upside in the stock is limited with most of the return pot'l in the dividend (5.5% yield) and we maintain a preference for T (Buy-rated $33 PT)."
For more ratings news on Verizon Communications click here and for the rating history of Verizon Communications click here.
Shares of Verizon Communications closed at $35.36 yesterday, with a 52 week range of $25.99-$37.70.
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Deutsche analyst says, "We are downgrading Verizon to HOLD, primarily due to valuation. While we expect a strong year for wireless (iPhone, 4G), we believe this is mostly reflected in the stock, which is now at a steep premium to AT&T (NYSE: T), the S&P 500 and historical levels. For example, VZ is trading at 15.4x our above-consensus 2011 EPS estimate vs. T at 11.4x and the S&P 500 at 13.7x. We therefore believe pot'l upside in the stock is limited with most of the return pot'l in the dividend (5.5% yield) and we maintain a preference for T (Buy-rated $33 PT)."
For more ratings news on Verizon Communications click here and for the rating history of Verizon Communications click here.
Shares of Verizon Communications closed at $35.36 yesterday, with a 52 week range of $25.99-$37.70.
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