Vodafone share price: Investors eye telco’s results next week

on Jul 19, 2019
Updated: Mar 11, 2020

Vodafone (LON:VOD) is set to update investors on its first-quarter performance a week from today. The results will come after the European Commission okayed the group’s acquisition of Liberty Global’s operations in Germany, the Czech Republic, Hungary and Romania.

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Vodafone’s share price, which rose yesterday following the Liberty deal approval, has built on gains today, having added 1.34 percent to 128.60p as of 14:49 BST. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index which currently stands 0.13 percent higher at 7,502.73 points.

Vodafone to post results

Vodafone is scheduled to post its first-quarter results on Friday, July 26, and Proactive Investors reports that UBS expects the three-month period to have seen an improvement in Italy, weaker South Africa, Spain softer but close to bottoming out, while the UK and Germany are expected to have seen broadly similar trends to the prior quarter.

“While Q1 trends themselves may not be a notable catalyst, we see Vodafone as too cheap,” the broker pointed out.

Proactive Investors also quoted Berenberg as commenting that it sees ‘attractive’ risk/reward ratio in the stock, eyeing a “virtuous circle of improving revenue trend and faster deleveraging to drive a re-rating of the equity and restore confidence in the rebased dividend”, although they do not expect services revenues to return to growth until the third quarter of the financial year.

IG’s financial writer Aaran Fronda meanwhile commented in a note this week that in the wake of the telco’s disappointing full-year results, Vodafone’s share price tumbled more than 11 percent, hitting 123p a share, and is capable of falling below that level if the company is unable to deliver a strong performance in its Q1 results

Analyst ratings update

HSBC, which rates the blue-chip telco as a ‘buy,’ set a target on the Vodafone share price of 160p yesterday, while UBS reaffirmed its bullish stance on the company, without specifying a valuation on the stock. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 185.06p.

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