Deutsche Bank Cuts Estimates on Telecom Stocks (T, VZ, LVLT, Q, more..)

Deutsche Bank cut estimates on numerous telecom stocks this morning, citing the increasing likelihood that the existing credit crunch will spill over into the business segment of the US telecom services group. The firm calls the upcoming quarter "challenging" for telecom companies, but notes that the quarter will be "not without opportunities".

The firm made the following estimate cuts:

• AT&T (NYSE: T) - rated Buy; price target cut from $47 to $39; FY08 estiamtes: sales from $124.89 billion to $124.405 billion, EPS from $3.03 to $2.91; FY09 estimates: sales from $131.01 billion to $129.63 billion, EPS from $3.43 to $3.20
  
• Verizon (NYSE: VZ) - rated Buy; price target cut from $50 to $44; FY08 estimates: sales from $97.48 billion to $97.03 billion, EPS from $2.65 to $2.58; FY09 estimates: sales from $102.42 billion to $101.03 billion, EPS from $3.01 to $2.91
  
• Level 3 (Nasdaq: LVLT) - rated Hold; price target cut from $4.00 to $3.20; FY08 estimates: sales from $4.347 billion to $4.309 billion, EPS from ($0.27) to ($0.31) FY09 estimates: sales from $4.55 billion to $4.44 billion, EPS from ($0.16) to ($0.25)
  
• Qwest (NYSE: Q) - rated Buy; price target cut from $8 to $7;
  
• Embarq (NYSE: EQ) - rated Buy; price target cut from $56 to $51; FY09 estimates: sales from $5.973 billion to $5.969 billion, EPS from $5.53 to $5.52
  
• Global Crossing (Nasdaq: GLBC) - rated Hold; price target cut from $23 to $22; FY08 estimates: sales from $2.65 billion to $2.572 billion, EPS from ($5.05) to ($5.35) FY09 estimates: sales from $2.91 billion to $2.684 billion, EPS from ($3.75) to ($4.21)

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