Pali Research Initiates Coverage on Verizon (VZ) with a Buy

June 18, 2009 8:15 AM EDT

Pali Research initiates coverage on Verizon (NYSE: VZ) with a Buy rating and $39 price target.

Pali analyst says, "As the wireless industry passes 90% penetration, growth in revenue and profitability becomes a market share game demanding that investors pick winners and losers and we believe Verizon will be the primary winner. We believe that a critical change has occurred at Verizon Wireless under the leadership of Lowell McAdam that will lead to market share gains and revenue and EBITDA growth for Verizon that exceeds it peers based on willingness to embrace a more open strategy while maintaining its best in class network and strong customer care. Verizon ranked #1 in our Q2 survey of customer care response times. We expect Verizon to extend its gains over the next 3-5 years as disgruntled AT&T (NYSE: T) customers come off their two-year iPhone family plan contracts and Verizon expands its higher capacity and higher speed LTE network. We expect double digit revenue and EBITDA growth throughout 2009. Our 2010 EPS estimate of $2.80 compares to consensus of $2.67 and in the second quarter we expect EPS of $0.63, which is in-line with consensus."

Verizon Communications Inc. (Verizon) is a provider of communications services.

To see more analyst ratings on VZ Click Here.

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