Morgan Stanley Reiterates Equal-Weigh on Verizon

Morgan Stanley maintains its Equal-weight rating on Verizon (NYSE: VZ) as the company's margins decline on record iPhone sales.

Morgan Stanley says, "Verizon wireless EBITDA margins decline 500 – 600 bps on record 4.2M iPhone sales, but wireline margins recover from strike / storm from 3Q11. We believe that the supportive dividend yield and strong execution on wireless appears priced in."

VZ closed at $38.97 a share on Friday.