Vodafone Fair Value Lifted to £1.22 as Analysts Raise Targets on Q1 Trading

Simply Wall St··GBDE·Read original
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Summary · why it matters

Analysts raised their fair value estimate for Vodafone Group from £1.20 to £1.22, a roughly 2.2% increase, after what several banks described as stronger Q1 trading and a clearer view on the Vodafone Three stake acquisition. Berenberg lifted its price target to 140 GBp from 123 GBp, citing strong Q1 results especially in Vodacom and Germany and the acquisition of the 49% stake in Vodafone Three, while Goldman Sachs set a higher 155 GBp target and moved to a Buy rating, pointing to faster improvement in return on invested capital. New Street also moved to a Buy rating, and Morgan Stanley raised its target twice, from 105 GBp to 115 GBp and then to 125 GBp, though it kept an Equal Weight rating. The revised targets cluster in the £1.15 to £1.55 range. Alongside the fair value change, the model's revenue growth assumption shifted from roughly 5.17% to 5.33%, the net profit margin moved from about 7.95% to 6.94%, and the future P/E rose from about 8.9x to 10.5x, with the discount rate holding around 7.56%.

Impact on assets 4

Financials▲
Cloud & Digital Infrastructure▲
Vodafone Group PLC
VOD
▲ PositiveCapitalrelevance

Analysts raised Vodafone's fair value to £1.22 and multiple banks lifted price targets/Buy ratings after stronger Q1 trading and the Vodafone Three stake acquisition.

Others▲

Off-coverage companies 3

JOH Berenberg, Gossler & Co KGi
Private± Mixedrelevance

Vodacom Groupi
Private± Mixedrelevance

VodafoneThreei
Private± Mixedrelevance