Deutsche Bank Raises PT To $37 On Verizon

Deutsche Bank has raised the price target from $36 to $37 and is maintaining its Hold rating on Verizon VZ, in light of strong 1Q11 results. In the report, Deutsche Bank writes, “We maintain our HOLD on Verizon (VZ) following an admittedly solid quarter based on our view that VZ's premium valuation to the S&P 500 and AT&T (see Fig 2) offers limited upside potential. In particular, we believe that our and consensus estimates appropriately factor in strong post paid ARPU and sub trends due to rapid smartphone adoption. In our view, this limits the potential for operational beats this year with 1Q11 a prime example. So, until we have better visibility into positive estimate revisions, we believe the shares will remain range bound.” VZ closed at $36.91 last Thursday.