Vodafone has delivered stellar 2025A performance, but current valuation near £1.07/share limits further upside. The stock now trades above its 20-year average valuation at close to 15x P/E, with a dividend yield below 3.7%. Successful UK merger and growth in Africa offset weak legacy European markets, but forward growth is likely to moderate.
Shares fell after the company's revenue missed market expectations, dragged by a poor performance in Turkey.
Vodafone Group PLC said it expects to deliver at the upper end of its profit and cash flow targets for the year, even as service revenue in key markets missed expectations for the third quarter. The telecoms group reported service revenue up 5.4% on an organic basis in the past quarter, down from 5.8% in the second quarter and below the City's forecast of 6.0%.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Vodafone Group PLC (LSE:VOD) shares have staged a sharp recovery, with Deutsche Bank upgrading its target price from 140p to 150p and reiterating a 'buy' rating as the company has done well to put past troubles behind it. Analyst Robert Grindle, who has for some time likened Vodafone's troubles to Lemony Snicket's book and Netflix programme 'A Series of Unfortunate Events', now sees signs of a turnaround, noting the situation is "no longer so Lemony".
Vodafone Group PLC (LSE:VOD) has had its price target raised to 100p from 85p by Citigroup, which reiterated a 'neutral' rating ahead of the group's third-quarter results, pointing to diverging trends between its German and UK operations. In a note, Citi said the Q3 update is expected to show an improvement in Germany, offset by weaker performance in the UK.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Vodafone Group PLC (LSE:VOD) has completed the acquisition of Skaylink for €175 million, the company announced on Wednesday. The deal, first announced in October, is intended to accelerate the expansion of Vodafone Business in professional and managed services, cloud, and security markets across Germany and Europe.
Vodafone Group PLC (LSE:VOD) shares showed no reaction to a spotlight being shone in Parliament about the treatment of franchisees. During business questions in the House of Commons, MP Justin Madders said: “I'm sure the department will have been aware of the coverage this week of some of the harrowing stories of the treatment of Vodafone franchisees,” and asked whether ministers would consider measures such as a statutory code or arbitration system to measures to redress a "power imbalance".
Vodafone Group PLC (LSE:VOD) shares rose 1.6% to 95.38p after Barclays upgraded the group to 'overweight' from 'equal weight' and lifted its price target to 120p from 100p, arguing the company is finally showing signs of regaining a “challenger mindset”. The bank says 2026 could mark a shift after years of declining earnings, with improving trends in the UK, Germany and Africa.
Vodafone Group PLC (LSE:VOD) is set to take charge of Safaricom, Kenya's biggest telecoms group, after its African arm agreed to buy an extra 20 % stake for a combined €1.81 billion. The move will give Vodafone and Vodacom a controlling 55 % shareholding and allow both companies to fully consolidate Safaricom's results.
Vodafone Group PLC (LSE:VOD) second quarter brought signs of operational improvement, but UBS argues the market has taken the good news too far. The shares have rallied more than 35% this year, helped by buybacks and a cleaner portfolio after the sale of Spain and Italy, yet the bank keeps its 'sell' rating and 80p price target.