UPDATE: Bank of America Merrill Lynch Downgrades Vodafone Group to Neutral, Reiterates $32.30 PT

In a report published Wednesday, Bank of America Merrill Lynch downgraded its rating on Vodafone Group

from Buy to Neutral. BofA Merrill Lynch noted, “Vodafone remains a decent top-line growth story (rev growth of +1.8% in 13E, incl. US). Vodafone & Verizon W are building Best Network, which should drive market share win. The DPS yield of c7.5% (incl. US) is attractive, while leverage is comfortable. However, we see headwinds in Italy (EBITDA pressure) & the US (duopoly nearing end). Vodafone faces considerable spectrum outlay in India. The P/E multiple is at the top-end of the range - notably as consenus 2014E EPS has been downgraded by c10%.” Vodafone Group closed on Tuesday at $29.98.