Vodafone: Credit Suisse double downgrades stock

(CercleFinance.com) - Credit Suisse has downgraded Vodafone shares to "Underperform" directly from "Outperform", slashing its target price to 90 pence (from 140 pence), after reducing its EBITDA estimates by 5.
6% for 2024 and more in subsequent years, increasing its applcable WACC to 6.2% from 6% previously.

The broker says that it has factored in "disappointing H1 FY23 results, higher energy costs in FY24 and higher German fibre access costs long term".

While previously positive on the scope for M&A to drive the shares, Credit Suisse now believes that this is largely priced in the share following the Vantage and Vod UK/3UK announcements.



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