UPDATE: Deutsche Bank Raises Price Target on Verizon to $39

According to Deutsche Bank, Verizon (NYSE: VZ) price target is raised to $39.

Deutsche Bank said that it is trimming its EPS estimates for VZ based on the company's disclosure at an investor conference yesterday that strong sales of the iPhone and LTE devices are driving elevated equipment subsidy costs and therefore pressuring wireless EBITDA margins. “We therefore reiterate our Hold rating as nearly all of the potential return in the stock is from the dividend (5.1% yield).”

Verizon closed yesterday at $39.21.