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Oppenheimer downgrades Verizon on valuation

Mandel Ngan | AFP | Getty Images

Oppenheimer downgraded shares of Verizon Wednesday on valuation and the risk of negative headlines hitting the stock like a poor launch for the new iPhone in September or an ill-advised purchase of Yahoo.

"We remain optimistic on long-term wireless and fiber fundamentals, but the stock is now $2 above our prior price target and is trading at relative highs on several metrics (relative dividend yield/EBITDA multiple)," said Oppenheimer's Timothy Horan in a note to clients. "Near term, wireless is facing some pressures which have historically hurt the stock — spectrum auctions, FCC regulation/changes and the new iPhone — while negative news short term, fundamental impacts will be minimal. "

The analyst downgraded the stock, which is up 20 percent this year, to a perform rating from outperform.