Credit Suisse Updates 6/20

Credit Suisse made a number of updates in a research report published today. Credit Suisse initiated coverage on Kosmos Energy KOS with an Outperform rating and a price target of $25. In the report, Credit Suisse states, "Our favorable view of KOS centers around (1) the value creation track-record of its team of world-class oil finders (ex-Triton Energy); (2) the strong discovered resource base in Ghana; (3) high current cash flow from KOS' interest in the 120 Mb/d Jubilee field, which helps to fund significant exploration activity; (4) the low breakeven oil price for Ghana developments which should ensure the sanction of future projects and expand the borrowing base for the company; and (5) an attractive valuation underpinned by Ghana." On Friday, Kosmos added 0.16% to its value to close the week at $18.33. Verizon VZ had its estimates revised. The report states, "Net adds are mostly unchanged at 1.1MM; however the mix of adds is more heavily weighted to Internet devices than expected. This drives lower than expected retail ARPU growth (2.9% vs. 4.2% previously) and higher than expected EBITDA margin (44.9% vs. 44.5% previously). Lower ARPU growth in '11 and '12 resulted in lower '12 EPS ($2.80 vs. $2.99 previously). We remain above '12 consensus EPS of $2.61." At the moment, Credit Suisse has a Neutral rating and a price target of $35 placed on the company's stock. On Friday, Verizon added 0.77% to its value to end the week at $35.51.