Nomura Analyst Sees JNRP, CIEN, ALU & ERIC Benefiting From Verizon's (VZ) Reiteration of FY Capex

Nomura Securities maintains a 'Neutral' on Verizon Communications (NYSE: VZ) price target of $42.00.

Analyst, Stuart Jeffrey, issued comments on Verizon after the company released its capex data.

Jeffrey said, "Verizon reiterated its full-year capex guidance of “flat to down” from 2011 levels...We note 1H capex spending had tough comps due to the EV-DO deployments ahead of the Verizon iPhone (Nasdaq: AAPL) launch. The company’s full-year capex outlook suggests an 18% 2H improvement over 1H, which potentially bodes well for communications equipment vendors with Verizon exposure in the second half."

Verizon calls out next generation routing, 40G / 100G optical networks – Jeffrey sees positive for Juniper (Nasdaq: JNPR) and Ciena (Nasdaq: CIEN)

Verizon’s soft Q2 capex spending is consistent with Alcatel-Lucent's (NYSE: ALU) and Ericsson’s (Nasdaq: ERIC) US results and commentary in the most recent quarter results. However, Verizon’s reiteration of its capex guidance is encouraging for ALU and Ericsson as it suggests some recovery/’catch up’ spending in the 2H for both companies.

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 $45.89 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• First Busey (BUSE) PT Lowered to $24 at DA Davidson
• Synchrony Financial (SYF) PT Raised to $41 at BMO Capital
• ASM International NV (ASM:NA) PT Raised to EUR720 at Citi