Vodafone: Jefferies upgrades stock

(CercleFinance.com) - Jefferies has upgraded its rating on the Vodafone stock from "hold" to "buy," having raised its corresponding target price ("fair value") from 144 pence to 176 pence, which gives the British mobile operator upside potential of 22%.


According to analysts, the British group is capable of achieving a return on invested capital (ROIC) of 7% by March 2023 (against 5.1% in March 2020), while reducing its gearing to 2.7x (against 3.3x).

In its research note the broker also shows how "tower monetisation can justify higher fair values in a range of approx 210p to 230p".


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