Goldman Sachs Suggests Buying Calls on Verizon Communications

Goldman Sachs is out with a research report this morning, where it suggests that traders buy calls on Verizon Communications VZ ahead of earnings. Goldman Sachs Telecom and Cable analyst Jason Armstrong met with VZ management. He rates VZ shares Buy (on the Conviction List) and sees 14% 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 EPS estimates. Goldman Sachs suggests buying the August $38 call for $0.38. 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.