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Michele Maatouk Sharecast News
11 May, 2021 12:51

Goldman Sachs adds Vodafone to 'Conviction List'

Vodafone Group

69.94p

11:50 15/11/24
0.89%
0.62p

Goldman Sachs added buy-rated Vodafone to its ‘Conviction List’ on Tuesday, with its thesis predicated on the company’s "superior structural growth, compounded by best-in-class digital efficiencies, driving sector-leading free cash flow and returns improvement".

FTSE 100

8,069.17

11:50 15/11/24
n/a
n/a

FTSE 350

4,458.17

11:50 15/11/24
n/a
n/a

FTSE All-Share

4,416.34

11:50 15/11/24
n/a
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Mobile Telecommunications

1,979.89

16:59 24/01/22
1.09%
21.37

The bank said two recent updates were more bullish for the top-line structural growth outlook than it had expected, with German revenue growth acceleration and a business-to-business CMD that implied consistent, returns-accretive revenue growth, versus peer declines.

Goldman, which lifted its price target to 195p from 165p, said FY21 results could bring mid-term guidance for consistent European top-line growth as well as free cash flow and returns growth above consensus expectations.

"We would expect this to catalyse a re-rating for one of our top value picks in the sector," it said.

Goldman noted that Vodafone trades at a 28% sector discount and said this is not justified by ramping returns and superior growth.

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