Vodafone’s shares (LON: VOD) are listed on the London Stock Exchange under the ticker code VOD. Vodafone shares are also included as a component of the FTSE 100 index.
Vodafone Group Plc is a global telecommunications company headquartered in the United Kingdom. Founded in 1984, Vodafone has grown into one of the world’s largest mobile network operators. The company provides a range of voice, messaging, data, and fixed-line services to both consumers and businesses across multiple countries.
Vodafone’s core business focuses on mobile network operations, but it also offers a variety of other services, including broadband internet, TV, and digital financial services. Through strategic partnerships and investments, the company has expanded its reach and product offerings to cater to a diverse customer base.
(Note: The UK government recently conditionally approved the merger of Vodafone UK and Three UK, subject to certain conditions. The UK’s Competition and Markets Authority (CMA) is also investigating the deal, with a Phase 2 investigation scheduled to run until September 18, 2024.)
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Vodafone Share Price, Chart & Dividend Yield
It has been an extremely rough ten years or so for Vodafone shareholders, with the stock seeming to be on a continuous decline. It has, more recently, found its footing, gaining more than 7% so far in 2024. The company is currently aiming to trim down its business in order to rebound.
Dividend Yield: 10.37%
Vodafone EPS and Revenue Breakdown 2020-2023
| Annual EPS | Annual Revenue | |
|---|---|---|
| 2020 | £0.07 | £37.32 billion |
| 2021 | £0.09 | £38.40 billion |
| 2022 | £0.10 | £40.17 billion |
| 2023 | £0.06 | £31.39 billion |
Telecommunications Industry Comparison
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Vodafone Share Price Forecast
Data compiled by TradingView shows that out of 13 analysts covering Vodafone, seven have a Buy rating on the stock, four have assigned it a Hold rating, and two a Sell rating. Here is one bull and one bear case for the Vodafone shares:
The Bull Argument: In June, Deutsche Bank analyst Robert Grindle resumed coverage of Vodafone with a Buy rating and 140p price target. The analyst noted that Vodafone shares had “recovered somewhat” and “are cheap.” Furthermore, while he acknowledged that there is a German headwind, he believed it was already well known, and a UK deal or asset monetisations should help the company’s ahead of trend improvement.
The Bear Argument: Meanwhile, in February, analysts at Oddo BHF cut Vodafone to Neutral from Outperform, lowering the price target for the stock to 74p from 85p a share. The investment firm said in its note to clients that it sees a lack of catalysts to move the shares higher. Elsewhere, in December 2023, analysts at Edward Jones and Exane BNP Paribas also cut Vodafone shares to Sell/Underperform.
Average Analyst Consensus 12-Month Price Target: 89.36p
Who Should Buy Vodafone Shares
While Vodafone presents an investment opportunity within the telecommunications sector, careful consideration of the company’s performance and future prospects is essential. In addition, investors should assess how the stock and company aligns with their own investing goals. Below are some investor profiles that may find Vodafone appealing:
Income-Oriented Investors: Vodafone has a history of consistent dividend payments. Investors seeking regular income streams may find the company attractive, particularly given the relatively high dividend yield compared to many other sectors.
Long-Term Growth Investors: While the telecommunications industry is mature, Vodafone is investing heavily in 5G networks and other technological advancements. Investors who believe in the company’s ability to adapt and capitalise on these opportunities may consider Vodafone for long-term growth potential.
Global Diversification Seekers: Vodafone operates in multiple countries, offering exposure to different economic conditions. Investors looking to diversify their portfolios geographically may consider Vodafone as a potential investment. However, it should also be noted that as of late the company has been slimming down its operations.
Tech-Focused Investors: With its focus on 5G, IoT, and other emerging technologies, Vodafone offers exposure to the technology sector. Investors interested in this space may find the company relevant to their portfolio.
