Vodafone Group PLC (LSE:VOD) shares have staged a sharp recovery, with Deutsche Bank upgrading its target price from 140p to 150p and reiterating a 'buy' rating as the company has done well to put past troubles behind it.
Analyst Robert Grindle, who has for some time likened Vodafone’s troubles to Lemony Snicket's book and Netflix programme 'A Series of Unfortunate Events', now sees signs of a turnaround, noting the situation is "no longer so Lemony".
The stock is up 45% over the past year, including a 20% rally since October, driven by strong gains in Vodacom and improvements in the European business, particularly Germany.
By raising its guidance and dividend at its interim 2026 results, a year ahead of Grindle’s expectations, this has added to the positive sentiment.
Free cash flow is also getting a lift from Safaricom, while the group continues its €2 billion annual buyback programme.
With investors' dislike of Vodafone’s sum-of-the-parts structure, Grindle suggests that potential associate disposals could help "make the math easier".
He notes that the UK-EU telecoms group's shares trade at a discount to the wider European staples sector, with its European operations valued at around 30% of expected free cash flow, excluding spectrum and restructuring costs.