Goldman Sachs Suggests Buying Calls on Verizon Communications

Goldman Sachs is out with a research note this morning, where is suggests that traders buy calls on Verizon Communications VZ ahead of earnings. Goldman Sachs Telecom and Cable analyst Jason Armstrong met with Verizon's investor relations team recently. He rates VZ shares as a Buy (on the Conviction List) and sees 11% upside to his 12-month price target of $42. For the quarter, the analyst expects VZ to beat Street expectations for 2Q sales and EPS by 1%/3% respectively, and sees 5%/9% upside to FY2011/FY2012 EPSestimates. Goldman suggests buying the August $38 call for $0.62. Verizon Communications Inc. is a holding company. Verizon through its subsidiaries is a provider of communications services. The company has two segments: Domestic Wireless and Wireline.