Nomura Securities Maintains a 'Neutral' on Verizon Communications (VZ); Exploring Sale of Spectrum

Nomura Securities maintains a 'Neutral' on Verizon Communications (NYSE: VZ) price target of $37.00.

Analyst, Mike McCormack, said, "Verizon announced that it would explore a sales auction process for its 24 12mhz A block and 54 12mhz B block licenses. It is our understanding that the A block has the potential for interference with Channel 51 in the broadcast spectrum, which may impair the value a buyer is willing to pay in the near-term. Longer term, the A block interference issue would likely be resolved. AT&T (NYSE: T) is the most logical buyer for the large market B block. Using a valuation range of $1-$2 per mhz/pop, 9 likely markets could be valued between $410mn and $820mn. MetroPCS and/or Leap Wireless are also likely bidders. T-Mobile is also a likely bidder, potentially escalating auction prices and raising risks to MetroPCS (NYSE: PCS) and Leap (Nasdaq: LEAP)."

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 $37.66 yesterday.

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