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
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, 10% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
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