Vodafone PLC is facing a big rise in energy costs according to analysts at Credit Suisse, which has trimmed its forecasts for the telco as a consequence.
Credit Suisse notes the UK giant warned in February it faced a €150mln energy headwind, but since then gas prices have risen by a further 50%.
Investors have yet to realise the potential earnings headwinds and the broker suggests there might be a guidance downgrade with the results next month.
The broker expects Vodafone to guide to underlying profits of €15.5bn in 2023, but this is €200mln below consensus with some tweaking down likely, it suggests, as forecasts catch up.
A saving grace might be some movement on the consolidation efforts flagged by the chief executive in November, which would be positive, for example, if a deal on towers was announced.
Credit Suisse’s rating remains 'outperform' with a 150p target price.
Shares today rose 0.8% to 126.6p.