Berenberg cuts target price on Vodafone, but keeps at 'hold'
Vodafone Group
69.80p
15:45 22/11/24
1.34%
0.92p
Analysts at Berenberg cut their target price for shares of Vodafone despite what they said was its cheap valuation and 10.5% dividend yield.
FTSE 100
8,260.10
15:45 22/11/24
n/a
n/a
FTSE 350
4,551.10
15:45 22/11/24
n/a
n/a
FTSE All-Share
4,506.61
15:45 22/11/24
n/a
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Mobile Telecommunications
2,002.81
16:59 24/01/22
-2.25%
-46.02
To back up their case, they pointed to the three reasons why investors typically shunned telecoms companies: a dearth of growth, excessive leverage their complexity.
"It is hard to get too excited about M&A when the underlying operations are expected to keep underperforming, as shown by only a muted share price reaction to the recent UK merger news," they wrote in a research note sent to clients."
They did keep their recommendation for the shares at 'hold', but the target price was reduced from 95.0p a share to 85.0p.
On their estimates, Vodafone shares were changing hands on nine times forecast earnings.