Citigroup rates the telecoms group “buy” with a target price of 195p. The broker reckons Vodafone’s dividend will rise 52 per cent to 13.5p next year thanks to partner Verizon’s payout pledge, and predicts a 44 per cent rise in free cash flow. However, Verizon’s new dividend policy will barely affect the firm’s earnings, Citi adds.
Nomura has started covering the insurance group with a “buy” rating and a target price of £20. The broker thinks that recent rates growth in the sector has yet to boost Admiral’s earnings, and expects a 19 per cent compound annual growth rate in the three years to 2013. This year could also yield earnings surprises, Nomura thinks.