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Technology Stocks : Vodafone-Airtouch (NYSE: VOD) -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (3131)	4/25/2001 1:38:15 PM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

Merrill Lynch has reduced its price target for Vodafone, but the telecoms group remains its favoured European sector pick. Merrill Lynch has lowered its price target for Vodafone to 300p from 400p and has cut its earnings forecasts for 2002, but the telecoms group remains the broker's top sector pick. Merrill's forecasts for the year to March 2001 are unchanged and, with results due on May 29, it looks for proportionate EBITDA of £6.9bn and underlying EPS of 3.49p. For the year to March 2002, the broker has reduced its proportionate EBITDA forecast by 6% to £9.45bn and its underlying EPS forecast by 11% to 5.33p with these changes reflecting the timing of acquisition completions, the ARPU impact of FY01 subscriber growth and a more conservative approach to EBITDA margins. The broker says its five-year (2001-2006) CAGR for proportionate EBITDA is 20% (previously 22%) and for underlying EPS is 26% (30%). The forecast changes leave the broker's 12-month DCF valuation at 270p (previously 330p) and as a result it has cut its price target to 300p from 400p. The broker's buy rating remains intact and it continues to view Vodafone as a winner in an attractive, premium growth industry; the stock remains its top European pick.