Update shared on 03 Nov 2025
Fair value Increased 1.18%Vodafone Group's analyst price target has been increased by analysts, rising from £0.87 to £0.88 per share. This change reflects updated expectations for stronger revenue growth, an improved discount rate, and market positioning amidst competitive pressures.
Analyst Commentary
Recent changes in analyst ratings reflect differing perspectives on Vodafone Group's prospects, valuation, and market positioning. Analysts have highlighted several key drivers and risks that could influence the company's future performance.
Bullish Takeaways
- Some analysts are raising price targets, reflecting renewed confidence in the company's growth outlook and revenue trajectory.
- Improved market positioning in certain segments is seen as a catalyst for higher long-term value.
- Bullish analysts view Vodafone's buy rating as justified, given ongoing operational improvements and positive expectations for execution.
- Valuation has become more attractive for those anticipating continued progress in strategic initiatives and sustained demand in core markets.
Bearish Takeaways
- Caution remains due to Vodafone's premium valuation compared to its reported free cash flow yield, raising questions about sustainability.
- Risks from intensifying fiber competition in key markets, especially Germany, could pressure revenue growth and market share.
- The expected de-rating of Vantage Towers, resulting from the loss of revenues in Spain, may impact Vodafone's overall value.
- Bearish analysts are concerned that these competitive pressures and potential asset challenges could outweigh near-term operational improvements.
What's in the News
- Ericsson and Vodafone announced a five-year strategic partnership to modernize Vodafone's network footprint. Ericsson will become the sole RAN vendor in Ireland, Netherlands, and Portugal, and a major partner in Germany, Romania, and Egypt. The partnership will focus on 5G Standalone and AI-powered network automation. (Key Developments)
- Vodafone Germany partnered with Movius to launch enterprise-grade secure communications, offering customers access to secure and compliant business mobile solutions across all endpoints. (Key Developments)
- Telenor and Vodafone entered a strategic global procurement alliance, leveraging a combined spend of over EUR26 billion to boost supply chain resilience and drive environmental and social responsibility in their operations. (Key Developments)
- Telefónica is reportedly considering acquiring Vodafone Plc's Spanish unit, with discussions underway and support from major shareholders. The deal would require regulatory approval. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly, moving from £0.87 to £0.88 per share.
- Discount Rate has fallen moderately, decreasing from 8.72% to 8.42%.
- Revenue Growth expectations have increased, going from 2.73% to 3.07%.
- Net Profit Margin has edged down slightly, changing from 5.05% to 5.02%.
- Future P/E Ratio has declined modestly, shifting from 12.75x to 12.67x.
Disclaimer
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