Vodafone Stock Analysis

last updated on

Vodafone Stock Analysis

Can Vodafone Stock Make A Comeback?

Vodafone's stock has lost 21% of its value in the last 3 years. But, this could also mean an opportunity to buy the Vodafone stock. After all, some of the best stocks you can buy are of big firms that are going through tough times.

Around 26 years ago, Vodafone's share was trading near 351p and was regarded as one of the most valuable stocks of the FTSE 100. At that time, Vodafone's valuation was 109.1 billion, which was quite a lot, but times have changed a lot.

Vodafone's Market Cap Is 25.5 Billion

Today, the market cap of Vodafone is 25.5 billion, which clearly tells us that things didn't go so well for the telecom giant.

But now, there are signs that Vodafone could make a comeback. They have already exited from various markets that were not so profitable.

Vodafone has also merged its UK operations with Three, which would further improve the bottom line. In fact, this merger means VodafoneThree is now the largest mobile network in the UK.

These changes didn't go unnoticed, and even teh IG's chief market analyst said that Vodafone's performance is one of the best turnaround stories in FTSE.

A quick look at the cash flow and earnings also shows they are headed in the right direction. So, it appears that the Vodafone management is trying really hard to make a turnaround, and it has also started to show in the revenue.

According to Deutsche Bank, the 12-month price target for Vodafone is around 150p. Citi has set a price target of 100p, and the general consensus is around 4%.

If we talk about major risks, then the top of the list is a massive debt pile. But given the strong history of Vodafone and all of the recovery efforts, there's a good chance of upside in the Vodafone stock price.

However, the upside in the Vodafone stock price could easily take years. This means buying Vodafone stock at current levels is only ideal for long-term investors.

Trending Stories