Vodafone: JPMorgan downgrades shares to 'neutral'
(CercleFinance.com) - Analysts at JPMorgan have downgraded shares in Vodafone to "neutral" from "overweight" on Wednesday, citing concerns over the mobile operator's near-term German revenue outlook and fading M&A hopes.
"We have long argued that there is meaningful "portfolio value" within the Vodafone group," they wrote in a research note dedicated to European telcos.
"However over the near-term we worry that operational and financial trends in Germany will disappoint," they added.
In the face of current macro and rate uncertainties, analysts at JPMorgan said they also worry it will prove more difficult for the British company to deliver value accretive in-market mobile consolidation deals.
They also lowered their target price on the stock, from 175 pence to 168 pence.
The Vodafone shares are currently down 2% on the London Stock Exchange.
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