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Pin to quick picksVodafone Share News (VOD)

Share Price Information for Vodafone (VOD)

London Stock Exchange
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Share Price: 69.44
Bid: 69.42
Ask: 69.48
Change: -0.56 (-0.80%)
Spread: 0.06 (0.086%)
Open: 69.84
High: 69.84
Low: 69.24
Prev. Close: 70.00
VOD Live PriceLast checked at -

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UBS keeps Vodafone at buy

Fri, 02nd Oct 2015 16:13

(ShareCast News) - Organic service revenue growth at Vodafone grew by a "solid" 0.7% over the three months to June and will accelerate to a 1.3% pace in the third quarter, UBS said.Despite a negative half percentage point impact from "phasing issues" in the second quarter, such as lapping price rises in Italy, one-off benefits at Vodacom in the second quarter and regulatory cuts in India, sales will accelerate as Germany improves, the broker said in a research note sent to clients."We see scope for an upside surprise on operating profits in EBITDA terms thanks to the company´s 'operational gearing' as revenues grow."Lower churn should lead to lower SAC/customer costs and additional cost saving measures should be forthcoming," analyst Polo Tang wrote.Investments linked to the company´s Project Spring and working capital requirements will push free cash flow lower.Nonetheless, Tang "remained relaxed" that Vodafone would achieve its fiscal year guidance for between 11.5bn and 12.0bn pounds in EBITDA.So, while recent operating trends have been "mixed" UBS expected a sequence of solid/improving quarterly trends to help drive a re-rating of the share price."We would also note the CEO/CFO recently purchased 260,000/180,000 shares respectively. At current levels we think there is little priced in for growth/M&A and press reports have suggested there is scope for VOD/LBTY to re-visit talks."UBS kept its 'buy' recommendation and 280p target price unchanged.
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