Goldman Sachs Removes Verizon (VZ) from Conviction Buy List, But Remains Top Pick in Telecom

Goldman Sachs removed Verizon Communications (NYSE: VZ) from its to Conviction Buy List, but is keeping a Buy rating and $45 price target suggesting 12% upside. The firm said Verizon remains their preferred telecom pick for 2012.

Despite less upside, Goldman is still excited about Verizon given: 1) product leadership across both Wireline (FiOS) and Wireless (broadest LTE footprint, devices), (2) well-above-average revenue growth (GS estimate: 4.5% in 2012), (3) margin expansion across both segments (we estimate margins expand 170 bp in 2012 to 33.7%), and (4) a healthy 5.0% dividend yield.

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 $40.12 yesterday.

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