Vodafone wins short-term buy idea from Deutsche Bank

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• Buying Vodafone (NASDAQ:VOD) marks one of the latest short-term catalyst calls from Deutsche Bank, looking for a safe harbor in a "difficult" market.
• Vodafone is up 14% in 2022, ahead of indexes but lagging a number of peers, the bank notes - and "We see little reason why telcos such as Vodafone won't continue to be a relative safe harbor in difficult markets."
• Meanwhile, if the market rallies, Vodafone (VOD) won't suffer, Deutsche Bank says, and it points to a number of factors: The group has high exposure to infrastructure as more deals in that sector are expected; the mobile price-volume mix is improving "in favor of more flexibility in capital intensity"; and management's taking steps to improve operations and grow the business by mid-single-digits in the medium term.
• Valuation looks favorable vs. peers, and it sports a fiscal 2023 dividend yield of 6.2% (vs. the sector's 4.4%), with an estimated free cash flow yield exceeding 10% (vs. the sector's 6.7%).

Comments

[Jarous]

Yet dividend isn't covered by earnings right?