Deutsche Bank has raised its target price for Vodafone Group, the telecoms group, to 160p from 150p and kept its 'buy' rating, arguing that fewer risks now weigh on the shares.
The new target sits about 29% above the last quoted price of 123.9p.
Analyst Robert Grindle said a series of setbacks had hardened investor sentiment, but recent events had eased some of the concerns that dominated the story.
He pointed to Vega, Xavier Niel's investment vehicle, buying e&'s 17.2% voting interest and later lifting it to 19.9%.
Vodafone also raised its guidance in its first-quarter trading update.
Deutsche Bank said the valuation still puts more weight on remaining risks than potential rewards, even though the shares have delivered a total shareholder return of more than 50% over the past year.
It believes investors may be underestimating the benefits of UK cost and operational synergies, a recovery in Germany and growth in emerging markets.
The bank expects free cash flow, the cash left after operating and capital spending, to recover as the balance sheet becomes less complex.
Consolidating Safaricom, the Kenyan operator, from July rather than October will weigh on financial year 2027 free cash flow because of dividend timing.
Even so, Deutsche Bank raised its forward estimates.
The note marks a more constructive view than its June report, "One battle after another", which met resistance.
