This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Telecoms sector been shunned since Trump election spurred hopes of fiscal stimulus and bond yields peak to calm the hunt for yield. VOD seeing more interest than troubled peer BT as OFCOM bars BT/EE from bidding for additional wireless spectrum due to market share. Since US joint venture disposal, VOD often touted as a takeover candidate. Generous dividend (5.95% yield) makes the shares attractive.
Consensus has a positive bias but also has a significant number of neutrals who could upgrade their views in light of the share price having found a bottom and begun to bounce. Note 87% of target prices suggest upside from current levels and the consensus valuation is 25% above where we trade today.
Next Event: 2016 trading update, 2 Feb
Latest Broker 12-Month Consensus: 53% Buy, 40% Hold, 7% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 0.6 | -8.5 | -12.9 | -15.7 | -9.3 | -15.3 | -32.1 | -2.8 | -10.1 |
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.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research