Vodafone Group PLC (LSE:VOD) has had its price target raised to 100p from 85p by Citigroup, which reiterated a 'neutral' rating ahead of the group’s third-quarter results, pointing to diverging trends between its German and UK operations.
In a note, Citi said the Q3 update is expected to show an improvement in Germany, offset by weaker performance in the UK.
The bank said sentiment towards Vodafone remains mixed, despite the shares being among the best performers in the European telecoms sector in the second half of 2025.
Citi said there is scope for sentiment to build further over the coming quarters. It highlighted that German revenue trends “remain positive for now”, while delivery of merger synergies in the UK adds another supportive element to the investment case.
However, the bank cautioned that Vodafone continues to be viewed as a consolidation “loser”, reflecting the risk of adverse newsflow around any potential consolidation in the German market.
Citi also said it expects German revenue trends to return to decline once the annualisation of the 1&1 revenue ramp-up is complete.
The updated forecasts also incorporate Safaricom, reflecting changes to Vodafone’s reporting and outlook. Citi said the higher target price balances near-term operational improvements against longer-term structural and consolidation-related risks.