Why Verizon Communications Inc. Shares Could Soar to $60

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Verizon Communications (NYSE: VZ  ) gained about 1% today after BTIG initiated coverage on the telecom giant with a buy rating.

So what: Along with the bullish call, analyst Walter Piecyk planted a price target of $60 on the stock, representing about 23% worth of upside to yesterday's close. So while momentum traders might be turned off by Verizon's year-to-date price sluggishness, Piecyk's call could reflect a sense on Wall Street that its wireless growth prospects are becoming too cheap to pass up.

Now what: According to BTIG, Verizon has one the best risk/reward trade-offs in the sector. "We believe that industry leader Verizon has positioned itself well to sustain some level of revenue growth and deliver EPS in excess of consensus estimates. Conversely, we expect AT&T (NYSE: T  ) to face revenue contraction in its core business and report EPS that shows no growth and falls below consensus," said Piecyk. "The key driver behind our divergent outlook between these two operators is the wireless business." When you couple those wireless growth prospects with Verizon's still-juicy 4%-plus dividend yield, it's tough to disagree with BTIG's total-return bullishness. 

Warren Buffett: This new technology is a "real threat"
At the recent Berkshire Hathaway annual meeting, Warren Buffett admitted this emerging technology is threatening his biggest cash-cow. While Buffett shakes in his billionaire-boots, only a few investors are embracing this new market which experts say will be worth over $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping onto one company that could get you the biggest piece of the action. Click here to access a FREE investor alert on the company we're calling the "brains behind" the technology.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3014739, ~/Articles/ArticleHandler.aspx, 9/20/2014 12:04:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 17,279.74 13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASD 4,579.79 -13.64 -0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/19/2014 4:00 PM
VZ $50.35 Up +0.66 +1.33%
Verizon Communicat… CAPS Rating: ****
T $35.47 Up +0.31 +0.88%
AT&T CAPS Rating: ***

Advertisement