Analyst Andrew Lee Reiterates Sell on Vodafone Amid Structural Growth Challenges, Constrained Balance Sheet, and Stretched Valuation

Analyst Andrew Lee of Goldman Sachs maintained a Sell rating on Vodafone, with a price target of p85.00.

Andrew Lee has given his Sell rating due to a combination of factors that, in his view, limit Vodafone’s medium‑term equity upside. He sees the company facing structurally weak organic growth in its core European markets, where competitive pressure and regulatory headwinds continue to weigh on pricing power and subscriber monetisation.

At the same time, Andrew believes Vodafone’s balance sheet flexibility is constrained by elevated leverage and ongoing capex needs for 5G and fiber, leaving limited scope for materially higher shareholder returns. He also judges the current valuation as stretched versus both historical levels and peers, given the execution risks around portfolio simplification, cost savings, and asset disposals that are already largely reflected in the share price.

In another report released yesterday, J.P. Morgan also maintained a Sell rating on the stock with a £0.85 price target.