Verizon Sees Lowered Profitability Estimates and 3 Stock Analyses Attracting Attention

Amazon.com Inc. (NASDAQ:AMZN): After conducting checks, RBC Capital believes that Amazon.com’s investments in fulfillment centers may begin to slow down in 2013. The firm maintains an Outperform rating on the stock.

American International Group, Inc. (NYSE:AIG): Bernstein believes that AIG is closer to becoming a capital return story over the next year. The firm said recent division sales have greatly improved AIG’s capital flexibility and positioning with the ratings agencies and Federal Government and this will enable the company to buy back $10 billiion or more in stock. Shares are Outperform rated with a $45 price target.

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Baxter International Inc. (NYSE:BAX): After speaking with neurologists, RBC Capital sees roughly a 50% probability that Baxter International Inc. will get approval from the Federal Drug Administration for Gammagard liquid in mild/moderate Alzheimer’s patients in 2016. The firm believes that the drug maker is worth $7-$14 per share, but thinks that investors are pricing in at only a $2-$3 value. They recommend buying the stock on its current weakness.

Verizon Communications Inc. (NYSE:VZ): RBC Capital significantly increased their fourth quarter and 2013 net adds estimates for Verizon Communications Inc., but lowered their profitability estimates for the company because of higher subsidy costs. However, the firm predicts that Verizon will generate low double-digit ROIC over the next several years compared to high single-digit ROIC for AT&T (NYSE:T). They maintain a Sector Perform rating on Verizon.

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