Deutsche Bank sees roughly 30% upside in Vodafone Group PLC (LSE:VOD), arguing the telecoms giant is moving past some of its biggest strategic flashpoints even as Germany continues to weigh on the investment case.
The broker reiterated its Buy rating, while trimming its price target to 150p from 155p. Against a last close of 115.75p, the revised target still leaves meaningful headroom for the shares.
“Whilst telco markets remain periodically combative (it was ever thus), VOD is facing fewer major conflicts across its now more focussed footprint,” analyst Robert Grindle said.
The bank pointed to what it called “material reparation” from the UK, where Vodafone is expected to benefit from synergies, alongside strong euro-denominated growth in emerging markets and balance sheet simplification through associate buy-ins and disposals.
Those drivers should “more than mitigate a Germany drag,” Deutsche Bank said, with the broker also looking ahead to an eventual recovery in Vodafone’s key German market.
