Vodafone: Oddo BHF still says buy, but cuts TP
(CercleFinance.com) - Oddo BHF maintains its "outperform" rating on Vodafone shares, while trimming its target price for them from 120p to 110p, having reduced its estimates for the telecoms operator after FY 2022-23 results were deemed disappointing.
The new target price reflects a lower valuation for Germany, less optimistic merger probabilities in the UK and Italy, with a 0% probability of selling Vodacom.
In terms of M&A, the broker considers that the disposal of its business in Spain is now the most likely option, and while it acknowledges disappointing fundamentals, it also sees real potential in terms of costs.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The new target price reflects a lower valuation for Germany, less optimistic merger probabilities in the UK and Italy, with a 0% probability of selling Vodacom.
In terms of M&A, the broker considers that the disposal of its business in Spain is now the most likely option, and while it acknowledges disappointing fundamentals, it also sees real potential in terms of costs.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.