Verizon's (NYSE: VZ) ongoing cloud service drive might help drive up the value of the telco's stock.
The telco's cloud service efforts have gotten the attention of financial services firm Oppenheimer, which upgraded Verizon's rating from "perform" to an "outperform."
In a research note, Timothy Horan, an Oppenheimer analyst, said that "the industry is seeing solid growth from Cloud Computing, which should benefit Verizon as well given its modern mobile/wireline broadband networks."
Currently, Verizon's stock was trading at $35.87 on the New York Stock Exchange.
An emphasis on cloud services reflects Verizon's move to diversify its wireline portfolio as one of the ways to battle the declines in legacy TDM-based voice services. In addition to bolstering its own cloud service portfolio organically through new product initiatives and ongoing data center build outs, Verizon purchased rival cloud provider Terremark in January.
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