FTSE 100 movers: Vodafone eases concerns

24th Jul 2009 17:01

Friday's quarterly trading update from telecoms giant Vodafone was well received and contained nothing worrying enough to persuade Morgan Stanley to changes its favourable stance on the stock.The US bank has maintained its "overweight" recommendation for Vodafone, saying the "valuation thesis remains compelling.""Underlying prospective PE is 6x ex-all goodwill/licences - and even including some ongoing licence costs, we think it is unlikely the PE would rise significantly above 7x," Morgan Stanley said.Fellow US bank Citigroup said the results were "better than almost anyone expected." Organic group service revenue fell 2.1% versus a consensus prediction of a 2.2% decline. Citi reiterated its "buy" recommendation and 180p share price target.Water companies ere under pressure again as brokers took their pencils to dividend prospects after yesterday's initial price review for the next five years from regulator Ofwat. South-west based Pennon is the worst performer.FTSE 100 - RisersLondon Stock Exchange Group (LSE) 689.50p +4.31%3i Group (III) 262.75p +3.85%Lonmin (LMI) 1,243.00p +3.76%Standard Chartered (STAN) 1,360.00p +3.34%Man Group (EMG) 288.00p +3.04%Vodafone Group (VOD) 120.25p +2.87%Schroders NV (SDRC) 783.50p +2.62%Intertek Group (ITRK) 1,102.00p +2.61%FTSE 100 - FallersPennon Group (PNN) 466.25p -4.94%Compass Group (CPG) 313.25p -3.98%Pearson (PSON) 606.00p -2.73%BAE Systems (BA.) 322.25p -2.42%TUI Travel (TT.) 225.00p -2.28%Eurasian Natural Resources (ENRC) 841.00p -2.21%Experian Group (EXPN) 467.50p -1.79%Reed Elsevier (REL) 481.25p -1.79%