Broker snap: Vodafone has less risk than peers, says Nomura

22nd May 2012 12:10

Nomura has maintained its buy recommendation and 225p target price for telecoms giant Vodafone despite the group's sales guidance being adjusted down."Vodafone has delivered steady enough full-year results, with guidance reflecting the uncertain outlook, but still committing to a flat cash-flow performance and 7% dividend growth," the broker said."In the context of the wider sector, this outlook is encouraging and topped up with Verizon Wireless (VZW) distributions, the stock should still be regarded as a lower-risk investment, in our view."Revenues for the year to the end of March came in at £46.41bn, broadly in line with Nomura's forecasts and market consensus, while EBITDA (earnings before interest, tax, depreciation and amortisation) of £14.47bn was slightly below due to £80m higher restructuring costs.The company now expects revenues to be "slightly below" previous guidance but the broker assures that a revision "was anticipated".Shares were trading 3.67% higher at 171.05p by midday on Tuesday.BC