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Friday, 20 July 2012 - Analysts raise Verizon price target on wireless growth |
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On Thursday, Verizon posted quarterly profits in line with analysts' estimates as it added more wireless subscribers than anticipated. Analysts said Verizon's leadership in its U.S. mobile phone market will continue to drive growth and help it gain a larger share of the postpaid market with growing adoption of the Long Term Evolution (LTE) mobile standard. LTE technology -- pegged as the successor for 3G mobile voice and data standards -- promises broadband-like internet speeds on mobile handsets. "We expect Verizon to continue to gain postpaid market share given its industry leading churn, a leadership position in LTE and the expected release of an LTE capable iPhone as soon as the fourth quarter," Citi Investment Research analyst, Michael Rollins wrote in a note. He raised his price target on the stock to $45 from $44. Verizon Communications' mobile phone joint venture with UK's Vodafone Group Plc (VOD.L) added 888,000 net new subscribers in the second quarter, compared with the average expectation of about 666,000 of seven analysts. J.P. Morgan Securities analyst Philip Cusick said Verizon's wireless EBITDA margin could exceed a record 50 percent in the current quarter driven by smartphone sales and an expected iPhone launch later in September. EBITDA margin, based on the segment's earnings before interest, tax, depreciation and amortization, was 49 percent in the second quarter, ahead of average estimates of five analysts for just above 47 percent. Cusick raised his price target to $49 from $45. At least seven other brokerages also raised their price target on the Company's stock which provides communication, information and entertainment products and services to consumers, businesses and governmental agencies. Verizon shares fell 1.5 percent to $43.85 on the New York Stock Exchange on Friday. (Reporting By Aurindom Mukherjee in Bangalore; Editing by Joyjeet Das) Tech Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. 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Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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