We upgrade our recommendation for Vodafone Plc (VOD) to Outperform based on the carrier’s solid operating results in the last quarter and management’s upbeat guidance.
Revenue growth was fueled by healthy contributions from the Asia-Pacific and Middle East operations. Additionally, subscriber growth was driven by continued healthy net additions in the company’s Indian operation. Vodafone continues to accelerate 3G wireless service deployments and expanding network availability across Asia, Eastern Europe and Africa.
Moreover, the company is focused on improving shareholder returns through attractive dividend payouts, supported by healthy free cash flow. Management’s outlook for fiscal 2010 appears more favorable as operating results are expected to improve with continued growth across the incipient markets coupled with the ongoing cost-saving initiatives.Zacks Investment Research
