Vodafone: stock hit by broker's downgrade

(CercleFinance.com) - The Vodafone share is down 2.
4% in London today, after the broker Jefferies downgraded its rating on the stock from "buy" to "hold," slashing its target price for the share from 240 pence to 165 pence, in particular judging that the stock's dividend is too generous considering the group's operational prospects.

"Nearly 5Y after exiting the US, dividend cover still hinges on FCF growth. But VOD is structurally squeezed," the broker underlines.

The broker adds that the sale of towers by the British telecommunications group would not lead to adopt a positive rating on the stock, although says that political support for investment in 5G could.



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