Shares in Vodafone (LON:VOD) have lost ground in London in today’s session as analysts at UBS lowered their price target on the blue-chip group, flagging slowdown in the company’s revenue growth. The comments come ahead of the telco’s trading update on Wednesday and annual general meeting next Friday.
As of 13:26 BST, Vodafone’s share price had given up 1.46 percent to 175.98p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.19 percent higher at 7,669.55 points. The group’s shares have lost more than 21 percent of their value over the past year, as compared with about a 2.4-percent gain in the Footsie.
UBS trims Vodafone’s price target
UBS lowered its price target on the shares from 255p to 250p today. The move comes ahead of the telco’s first-quarter results on Wednesday, and Proactive Investors reports that the analyst expects the group’s organic services revenue to have inched 0.1 percent higher, compared to a 1.4-percent in the previous quarter, due to weakness in Spain and Italy, along with an increased drag from UK handset financing.
The broker, however, continues to see the telco as a ‘buy,’ noting that the group’s shares “are trading at the bottom end of a five-year trading range, despite the company having transformed its portfolio and realising a tailwind from cost savings”.
Other analysts on blue-chip telco
Sanford C. Bernstein, which sees Vodafone as ‘neutral,’ set a price target on the shares of 220p earlier this week, while Deutsche Bank, which sees the telco as a ‘buy,’ tweaked its valuation on the stock from 280p to 275p. According to MarketBeat, the FTSE 100 group currently has a consensus ‘buy’ rating and an average price target of 240.45p.