CFRA Upgrades Vodafone (VOD) to Hold

CFRA analyst Adrian Ng upgraded Vodafone (NASDAQ: VOD) from Sell to Hold with a price target of $9.50 (from $7.50).

The analyst comments "We raise our recommendation on shares of Vodafone (VOD) to Hold from Sell with a higher target price of USD9.50 (from USD7.50). This represents FY25 (Mar.) consensus EV/EBITDA of 6.1x, which is similar to the valuation of its large telco peers. We deem the valuation as fair as it balances VOD's improving EBITDA margin trend with macro headwinds. VOD announced that it will be selling its Italian operations to Swisscom for EUR8 billion in cash, and plans to return up to EUR4 billion to shareholders via buybacks. VOD also plans to cut its dividend starting FY25 to EUR0.045 per share, half of its current DPS, corresponding to a dividend yield of ~6.4% at current prices. This sale is the latest in VOD's efforts to restructure its more challenging European operations. We are positive on this deal as it creates an easier operating environment for VOD, but neutral on the shares as it becomes a much leaner telco with a below average dividend yield."

For an analyst ratings summary and ratings history on Vodafone click here. For more ratings news on Vodafone click here.

Shares of Vodafone closed at $8.82 yesterday.

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