Oppenheimer Reiterates Outperform, $42 PT on Verizon

Oppenheimer maintains its Outperform rating and $42 price target on Verizon

as channel checks suggest very strong smartphone sales, which may pressure EPS. Oppenheimer notes, "Our channel checks indicate strong smartphone sales at Verizon, and we are raising our sales forecast by 1M which is pressuring our EPS by $0.03 in the quarter. We are maintaining our 2012-13 estimates. We expect that VZW will sell approximately 4-5M iPhones in the quarter, a one million increase or $400 million in increased subsidies. The stronger sales will lead to stronger revenue growth for VZ in 2012 and beyond. These trends bode positively for the tower providers." VZ closed at $38.63 per share on Monday.