Vodafone Stock Gained Upside

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Vodafone Stock Gained Upside

Vodafone Stock Gained 38% Over 12 Months. Can It Go Higher?

Vodafone shares were struggling for a long time. From 2018 to 2025, Vodafone shares lost 70% of their value! But Vodafone has since made a rebound and improved its profitability.

The Vodafone share price has gained 38% upside over the last year. If we look back, the profitability of Vodafone collapsed from FY21 to FY25.

Vodafone Stock Is Making A Comeback

Now, things are changing, as organic service revenue growth has hit 5.2%. Vodafone's EBITDAal has also gone up by 6.2%. The company is also expecting the results to be near the upper range of guidance.

Vodafone's strategy for turnaround focuses on three things. Growth, simplicity, and customers. The company is trying to improve the customer experience and is focusing on net promoter scores.

The company is also offloading its non-core assets. In addition, Vodafone has already made job cuts and has many more in the pipeline.

According to City analysts, the profit will likely improve in the medium term due to Vodafone's strategy. The expected net profit for this financial year is 2,400 million. If this turns out to be true, it would be a big jump from a net loss of 397 million in the last financial year.

If Vodafone manages to achieve its net profit target, it would mean a growth of 20% y/y. Looking ahead, analysts think Vodafone shares can gain more upside in the medium to long term.

However, the upside would depend on how Vodafone goes ahead with operational improvement. And if we talk about risks, the biggest one is capex spending. Of course, there's also a risk about how Vodafone will go ahead with the execution of its plan.

But based purely on the risk and reward proposition, it is clear that Vodafone shares look very attractive. So, if you are thinking of buying a stock in the telecom sector, then you should definitely consider Vodafone.

Last but not least, the increased AI spending will also have a positive impact on Vodafone's operations and bottom line.

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