Goldman Sachs Keeps Top Rating on Verizon (VZ) After Cost-Saving Focused CFO Meeting

Goldman Sachs reiterated its Conviction Buy List rating and $45 price target on Verizon Communications (NYSE: VZ) following a discussion with CFO Fran Shammo which focused on cost-saving opportunities.

"Cost efficiencies, margin improvements in focus. Verizon highlighted visibility into further improvements in its cost structure, driven primarily by network efficiencies and process improvements," the firm comments.

The goal is for wireline to pick up its proportionate tab of the corporate dividend, the firm notes. The segment would need to generate $2B in FCF this year to fulfill this. In wireless, the focus in on paying down debt as it matures.

Goldman said buybacks are likely a 2013 discussion.

For an analyst ratings summary and ratings history on Verizon Communications click here. For more ratings news on Verizon Communications click here.

Shares of Verizon Communications closed at $37.77 yesterday.

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