Goldman Sachs Suggests Buying Calls on Verizon (VZ)

Goldman Sachs is out with a research note this morning, where it suggests that traders buy calls on Verizon Communications Inc. VZ ahead of earnings. The GS analyst, Jason Armstrong, expects VZ to report postpaid net adds of +907K, largely from share gains from iPhone, LTE, and DROID, making VZ the only US carrier to grow subs this quarter. The analyst rates shares CL-Buy and sees 13% upside to his $42.00, 12-month price target. Goldman Sachs suggests buying the July $38.00 call for $0.87. 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.