Credit Suisse Cuts Verizon Rating to Buy From Strong Buy

Credit Suisse First Boston cut its rating on Verizon Communications (VZ Quote - Cramer on VZ - Stock Picks), a day after the company reported fourth-quarter earnings, citing "worrying signs" for the company's fourth quarter.

CSFB analyst Dan Reingold downgraded Verizon to buy from strong buy, and cut his 2001 earnings per share estimate to $3.10 from $3.15 a share. The company reported earnings of $1.71 a share for fiscal 2000.

Top-line worries have plagued the New York-based communications giant, partly because of slow sales at its Genuity(GENU Quote - Cramer on GENU - Stock Picks) affiliate. The company, nevertheless, maintained its 2001 earnings growth targets and even raised its 2001 revenue growth target to a range of 8% to 10%.

Shares of Verizon were lately down $3.20, or 5.8%, at $51.80 on the New York Stock Exchange, off from a 52-week high of $66.