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Home / Trade Alert / Buy – Vodafone (VOD)

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Buy – Vodafone (VOD) - 16 March 2017

Trade Parameters

  • Opening Price: 208.1p
  • Stop Loss: 204p (4.0p/1.9% below)
  • Profit Limit: 215p (7.0p/3.4% above)
  • Reward vs Risk: 1.8x
  • CFD Margin: 5%

Observations – For

Observations – Against

  • Stochastics and RSI in overbought territory
  • Potential end-Feb resistance at 210p
  • Daily volumes have been waning

Analyst Comments

Shares broken higher on news of VOD nearing merger of its Indian operations with Idea Cellular to create largest telecom company in the world’s most competitive market. Press suggestions that VOD and Liberty Global are back at the merger negotiating table. BT’s Openreach agreement could help VOD broadband products. VOD continues to rally since 2 Feb results which were well received and generated a bounce from more than 2yr lows.

Consensus is bullish biased but there is still a significant 40% of analysts that could upgrade from Neutral to Buy. This is supported by 80% of broker targets suggesting upside from current levels.  The 230p consensus target is beyond our 215p objective. The average of March broker updates suggests upside to 220p, again beyond our target.

Next Event: FY prelim results, 16 May

Latest Broker 12-Month Consensus:  50% Buy, 40% Hold, 10Sell (full breakdown on request)

Source: DowJones Newswires, Reuters News, Bloomberg  or Company Press releases

Broker Ratings & 12-Month Target Prices (Bloomberg)

3-month (4-hourly) - MACD, Stochastics, RSI, Momentum, Directional Indicators

Share 1wk 1m 3m 6m 1yr 2yr 3yr 4yr 5yr
Perf % 2.3 5.6 5.0 -5.2 -5.3 -4.9 -6.2 -8.8 0.2
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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

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