Vodafone: Credit Suisse reduces target price

(CercleFinance.com) - Credit Suisse has cut its price target for Vodafone shares from 170p to 150p after incorporating Vodafone's 400 million euro capex increase (5% reduction in FCF for FY2024) into its model.

Even so, the analyst confirms his Outperform rating on the stock.

"We believe the higher investment could ultimately translate into better growth... we now assume capex will grow roughly with revenues post FY22," the broker says.

"We believe some revenue and EBITDA improvement could follow in the coming years. Vodafone should report a ~100bp revenue growth improvement with Q1 FY22 revenues," Credit Suisse adds.

Vodafone shares are currently down over 2% at about 126p in London.


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