MARKET TALK: Evolution Cuts Vodafone To Neutral

0834 GMT [Dow Jones] Evolution Securities cuts Vodafone Group (VOD.LN) to neutral from buy, but raises target to 156p from 153p. Says Vodafone's 1.1% service revenue growth in 1Q '10 was encouraging, as is the growing willingness to sell non-core assets and the probable resurrection of the Verizon Wireless dividend. "However, we think these positives are offset by underwhelming operational performance relative to peers," says brokerage. Adds that selling non-core assets is a positive step, but without widespread disposals, the financial impact will likely be limited. Reckons selling China Mobile, Bharti, Softbank assets and Telecom Egypt would be 3-4% accretive for Vodafone on the brokerage's calculations. Shares -0.9% at 149p. (ishaq.siddiqi@dowjones.com) Contact us in London. +44-20-7842-9464 Markettalk.eu@dowjones.com (END) Dow Jones Newswires July 28, 2010 04:34 ET (08:34 GMT)