Analyst David Wright from Bank of America Securities reiterated a Buy rating on Vodafone (VOD – Research Report) and decreased the price target to p107.00 from p112.00.
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David Wright’s rating is based on a combination of factors that highlight Vodafone’s strategic positioning and operational strengths. Despite challenges in the German market, particularly with competitive pressures from O2D and delayed benefits from the 1&1 contract, Vodafone’s other operations, notably in the UK, Turkey, and Africa, show strong performance. Vodafone’s UK operations have shown improvement with record broadband additions, while Turkey’s market performance is notably robust, driven by advanced B2B and digital platforms.
Another reason for the Buy rating is Vodafone’s ongoing positive transformation, which includes simplifying operations, scaling its business, and enhancing customer service. Although German EBITDA recovery is crucial for long-term success, the overall positive service revenue growth and strategic efforts to improve customer satisfaction indicate potential for future growth. The valuation reflects these operational improvements and future growth expectations, making Vodafone an attractive buy for investors willing to wait for the German market recovery.
In another report released yesterday, Deutsche Bank also maintained a Buy rating on the stock with a £1.40 price target.