Goldman Sachs Suggests Buying Calls on Verizon Communications

Goldman Sachs is out with a research note this morning, where it suggests that traders buy calls on Verizon Communications VZ ahead of earnings. Goldman Sachs analyst Jason Armstrong recently met with VZ management and rates VZ shares Buy (Conviction List) and sees 14% upside over 12-mths. The analyst believe this quarter is setting up to be a positive catalyst for shares with potentially more stock movement than usual. 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 EPS estimates. Goldman Sachs suggest buying the August $37 call for $0.72. 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.