Shares in Vodafone (LON:VOD) have been little changed this morning, ahead of the telco’s full-year results tomorrow. The update, however, is set to be overshadowed by the FTSE 100 group’s €18.4-billion deal with Liberty Global announced last week.
As of 10:08 BST, Vodafone’s share price had given up 0.12 percent to 209.85p, marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.05 percent in the red at 7,720.44 points. The telco’s shares lost less than one percent of their value over the past year, as compared with a near four-percent rise in the Footsie.
Vodafone to post results
Vodafone is scheduled to update investors on its full-year results tomorrow and Proactive Investors reports that Numis Securities is forecasting full-year underlying earnings (EBITDA) of €14.75 billion, earnings per share of 11.82 cents and a dividend of 15.1 cents. Free cash flow meanwhile is expected to come in at €3.80 billion.
The telco’s results will come after the company announced last week that it had agreed to acquire Liberty Global’s operations in Germany, the Czech Republic, Hungary and Romania for an enterprise value of €18.4 billion. The deal, which is set to face scrutiny from regulators in Europe, is also set to challenge Deutsche Telekom.
Analysts on Vodafone
Barclays reaffirmed the company as an ‘overweight’ last week, valuing the shares at 265p. Interactive Investor quoted the analysts as saying that they thought the group can generate €7.5 billion of free cash flow over the next five years and keep growing the dividend.
Berenberg Bank, which rates the blue-chip telco as a ‘buy,’ meanwhile set a price target of 250p on the shares. According to MarketBeat, Vodafone currently has a consensus ‘buy’ rating and an average valuation of 247.58p.