Mobile network Vodafone (LON:VOD) is on the end of a downgrade today from Macquarie.
The joint venture with Liberty Global in the Netherlands highlights Vodafone’s structural challenges given the company is pursuing a convergent strategy, says the Aussie broker.
Its rating is cut to ‘Neutral’, while the price target is clipped to 225p from 235p.
“Vodafone has to either hit the M&A button (back to LBTYA or Sky) or continually spend more on networks via capex given it faces competition from incumbents and challengers.”
Vodafone’s share price will be hit if the UK stays within the EU while recent outperformance has been supported by sterling weakness.
Meanwhile, SocGen has met with BT boss Gavin Patterson (LON:BT.A), who was in upbeat mood says the broker.
“Trends are strong, savings on track and external headwinds look to us to be easing,” said the French broker.
Buy is its view on the grounds that BT-EE is in a very strong position post the failure of 3-O2.
The Phase 2 investigation led BT to do a lot of EE pre-integration planning.
So far, BT is ‘pleasantly surprised’, particularly with the cultural fit.
Jefferies says that takeway food app group Just Eat's (LON:JE) first Capital Markets Day showed the strength in depth of the bench.
The marketing and advertising push will clearly drive near-term performance, the product and technology push should secure Just Eat's longer-term competitive advantage.
Buy with a price target of 550.00p, is its view.
Cantor Fitzgerald said in a very challenging environment for copper producers, Canadian miner Rambler Metals and Mining PLC (LON:RMM) has financed an expansion that completely transforms its Ming mine.
The remaining mine life is set to increase to over 20 from around 5 years and the average annual copper production rate should rise by nearly 50% to 7.3kt.
“A combination of the increased production and a modest rise in the copper price more than outweighs the near 3-fold increase in shares from the all equity financing,” says the broker.
The new shares being issued though mean a reduction in the target price to 12p from 24p.