Nomura Securities Maintains a 'Buy' on Vodafone (VOD); Cautious for Two Reasons
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Price: $16.20 -1.34%
Rating Summary:
17 Buy, 5 Hold, 3 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
17 Buy, 5 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Nomura Securities maintains a 'Buy' on Vodafone (NASDAQ: VOD).
Analyst, James Britton, said, "Heading into FY results on 22 May, we are cautious for two reasons: 1) guidance – we expect Vodafone to step away from its previous revenue guidance for 1-4% growth, which would typically have consequences for its margin outlook; and 2) dividend policy – there is likely to be increasing scrutiny here given that the current ordinary dividend commitment is taking the yield to unsustainable levels. We believe Vodafone remains a relative Buy given its exposure to Verizon Wireless as well as to Enterprise, which we think is better positioned than the European consumer to weather austerity measures. With this in mind, we regard the fundamental valuation as attractive with the shares trading on 5.1x 2012E EV/EBITDA and 10.3x 2012E."
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 $26.78 yesterday.
Analyst, James Britton, said, "Heading into FY results on 22 May, we are cautious for two reasons: 1) guidance – we expect Vodafone to step away from its previous revenue guidance for 1-4% growth, which would typically have consequences for its margin outlook; and 2) dividend policy – there is likely to be increasing scrutiny here given that the current ordinary dividend commitment is taking the yield to unsustainable levels. We believe Vodafone remains a relative Buy given its exposure to Verizon Wireless as well as to Enterprise, which we think is better positioned than the European consumer to weather austerity measures. With this in mind, we regard the fundamental valuation as attractive with the shares trading on 5.1x 2012E EV/EBITDA and 10.3x 2012E."
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 $26.78 yesterday.
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