UBS just downgraded Verizon from "buy" to "neutral"
The Dow component Verizon Communications Inc (NYSE:VZ) was just served a bearish note by UBS. The analyst knocked the stock to "neutral" from "buy," saying its valuation already prices in a number of potential catalysts. The analyst maintained their price target of $59, which sits at a slight premium to current levels. VZ is down 2.1% at $56.94 at last glance -- set to end at the bottom of the Dow.
The drop has Verizon eyeing its third straight loss, and its worst day since March. In recent weeks, the equity has spiked atop its 20-day moving average, which acted as an area of pressure in late May and early April. VZ is back below this trendline today, however. Plus, the security is dangerously close to slipping south of a recent area of support at the 200-day moving average, which happens to coincide with Verizon's year-to-date breakeven, near the $56 region.

UBS' move toward the sidelines is nothing new for Verizon. Ten of the 15 analysts following VZ have given it a "hold" rating, while only five have deemed the stock a "strong buy." Plus, the stock's consensus 12-month target price sits in an area the equity visited earlier this week.
Options traders, on the other hand, are still optimistic on the stock, with Verizon sporting a 10-day call/put volume ratio of 3.16 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 82nd percentile of its annual range. This hints at a healthier-than-usual appetite for bullish bets of late.