UPDATE: JP Morgan Initiates Coverage on Verizon Communications
In a note released Tuesday, JP Morgan initiated coverage on Verizon Communications (NYSE: VZ) with an Overweight rating and announced a $57 price target.
Looking at the current value of Verizon shares, the telecom services, cable and satellite analyst team at JP Morgan weighed in stating, "With the stock currently trading with a 4.6 percent dividend yield and 12.1x 2015 EPS vs the S&P 500 at 2 percent dividend yield and 14.0x 2015 we see today's $46.23 as a very attractive risk-reward for a high-quality asset in the telecom space." The team noted that there is a possible risk that wireless growth could slow due to increased competition, primarily from AT&T, but believes fears about recent price competition are "overblown". To account for this risk, the team has built in slower 2014 service revenue growth (6.2 percent vs. 8.3 percent in 2013)
At last check, Verizon was trading up about half a percent at $46.50.
Latest Ratings for VZ
|Feb 2016||DA Davidson||Initiates Coverage on||Neutral|
|Dec 2015||BTIG Research||Downgrades||Buy||Neutral|
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