Bloomberg13 May 2022 09:18
Vodafone in ‘Tight Spot,’ Jefferies Cut to Hold on Forecast Risk
2022-05-13 05:05:20.445 GMT
By James Cone
(Bloomberg) -- (Updates with details from note.)
Vodafone “is in a tight spot” that will require the telecom
operator to issue cautious guidance next week, Jefferies says in
note downgrading to hold.
* Jefferies analyst Jeremy Dellis models Ebitdaal for 2023/24 at
2%/3% below consensus and says Vodafone’s credentials
“undermined” by forecast risk and issues with strategy
* Faces challenging backdrop “with no competitive let-up” and
rising costs
* Germany “punching below its weight” on erosion in retail
broadband market shares and weak pricing power
* PT to 125p from 150p, implies a 5.3% increase from last price;
stock now has 18 buys, 5 holds and 2 sells among analysts
tracked by Bloomberg
* NOTE, May 10: Vodafone Cut to Neutral at Redburn as Macro
Risks Dent Cash Flow
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* Next earnings announcement: May 17