Morgan Stanley analyst Emmet Kelly maintained a Hold rating on Vodafone today and set a price target of p95.00.
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Emmet Kelly has given his Hold rating due to a combination of factors impacting Vodafone’s current financial performance and future outlook. Vodafone has shown a commendable performance this year, with its shares rising by 33%, surpassing both the European Telco Index and the UK FTSE 100 benchmark. However, despite this positive momentum, there are underlying challenges that temper the optimism.
While Vodafone reported a promising start to the fiscal year with improved EBITDAaL growth and a notable merger with 3 in the UK, there are still pressures, particularly in the German market, where top-line and EBITDAaL declines are being observed. Additionally, although the company’s guidance for the fiscal year 2025/26 indicates a modest growth target, the potential upside remains limited, leading to a Hold recommendation. The transition to a new CFO, Pilar López, who brings significant experience, is expected to steer the company through these challenges, but the full impact of her leadership is yet to be seen.
In another report released on August 19, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a p91.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of VOD in relation to earlier this year.