Berenberg cuts target price on Vodafone, but keeps at 'hold'
Vodafone Group
66.48p
16:40 23/12/24
-0.03%
-0.02p
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
8,102.72
17:14 23/12/24
n/a
n/a
FTSE 350
4,471.06
17:09 23/12/24
n/a
n/a
FTSE All-Share
4,428.73
16:44 23/12/24
n/a
n/a
Mobile Telecommunications
1,957.13
16:59 24/01/22
0.01%
0.17
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.