Emmet Kelly, an analyst from Morgan Stanley, maintained the Hold rating on Vodafone. The associated price target remains the same with p95.00.
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Emmet Kelly has given his Hold rating due to a combination of factors influencing Vodafone’s current financial position. The company’s recent performance in Germany, its largest market, showed a return to positive revenue growth after a period of decline, which is a positive milestone. However, despite this improvement, the overall growth in profitability, particularly in the German market, remains modest, with EBITDAaL growth only slightly exceeding expectations.
Additionally, while Vodafone has upgraded its guidance for the fiscal year 2025/26, indicating potential for future growth, the current market consensus aligns closely with the mid-point of this guidance. This suggests limited immediate upside potential for the stock. Furthermore, the anticipated dividend per share growth, although positive, is relatively modest. These factors collectively contribute to a cautious outlook, justifying the Hold rating as the stock is expected to see only modest gains in the near term.
In another report released on November 7, UBS also reiterated a Hold rating on the stock with a p72.00 price target.