Citi says Vodafone not yet 'out of the woods', stays at neutral

Analysts at Citi reiterated their 'neutral' recommendation on shares of Vodafone, labelling the telecoms operator's first quarter results as "decent".

Nonetheless, the company was not yet "out of the woods", they said.

According to the analysts, the Key Performance Indicators for the group were pointing in the wrong direction.

Furthermore, in Germany the effects of Nebenkostenprivileg would begin to be felt by the end of the fiscal year and into FY2025.

"Although 1Q and 2Q improvements may be cheered more due to low expectations rather than underlying improvement, it is likely to be enough to further support the shares," they said in a research report sent to clients.

Indeed, risks around the 2025 fiscal year remained, they added.