Analysts at Jefferies & Co. on Thursday released some further positive commentary on telecom giant Verizon Communications Inc. ( VZ ).
The firm maintained its "Buy" rating on VZ as well as its $45 price target, which suggests a potential 16% upside to the stock's Wednesday closing price of $39.76.
However, Jefferies lowered its fourth quarter earnings estimate for the company by a penny to 54 cents per share. It made the move to reflect higher subsidies on smartphones. In order to reduce up-front phone costs for consumers, mobile phone carriers often subsidize a substantial portion of a phone's price in order to gain a long-term customer contract.
The firm also noted it expects VZ to post industry-leading customer additions in the fourth quarter.
Verizon shares posted modest gains in premarket trading Thursday.
The Bottom Line
We have been recommending shares of Verizon ( VZ ) since Oct.10, 2008, when the stock was trading at $25.93. The company has a 5.03% dividend yield, based on last night's closing stock price of $39.76.
Verizon Communications Inc. ( VZ ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.6 out of 5 stars.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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