UPDATE: Nomura Securities Downgrades Vodafone (VOD) to Neutral; Weakness Likely to Continue

September 12, 2012 7:47 AM EDT Send to a Friend
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Price: $33.07 +0.46%

Rating Summary:
    11 Buy, 8 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 24 | New: 17
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(Updated - September 12, 2012 8:59 AM EDT)

Nomura Securities downgraded Vodafone (NASDAQ: VOD) from Buy to Neutral. PT cut from 225p to 195p.

Analyst, James Britton, said, "...with the recent weakness in the share price likely to continue in our view. While we have put through some operational downgrades given the increasingly difficult situation in the Italian and Spanish markets, we also outline our concerns over the sustainability of the company’s dividend policy, something that we believe is at risk of being rebased, particularly following the detailed work that we have done on the likely spectrum spend in Vodafone’s key markets, an issue that we feel the market significantly under-estimates. With the stock trading on 5.3x 2012e EV/EBITDA versus the large cap average of 4.9x, we downgrade to Neutral."

For an analyst ratings summary and ratings history on Vodafone click here. For more ratings news on Vodafone click here.

Shares of Vodafone closed at $28.37 yesterday.


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