Vodafone (VOD, Financial) is experiencing notable bearish sentiment in the options market, as indicated by the trading of 1,435 put contracts, which is approximately twice the expected activity. The January 2026 puts, specifically at the strike prices of $11 and $12, are drawing considerable attention, collectively nearing 1,400 contracts in volume. The Put/Call Ratio for Vodafone has surged to 31.20. Additionally, the at-the-money implied volatility has risen by almost three points within the day. Investors are also keeping an eye on the company's upcoming earnings announcement, scheduled for November 11th.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Vodafone Group PLC (VOD, Financial) is $10.99 with a high estimate of $11.52 and a low estimate of $10.45. The average target implies an upside of 6.21% from the current price of $10.35. More detailed estimate data can be found on the Vodafone Group PLC (VOD) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Vodafone Group PLC's (VOD, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Vodafone Group PLC (VOD, Financial) in one year is $10.50, suggesting a upside of 1.5% from the current price of $10.345. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Vodafone Group PLC (VOD) Summary page.
VOD Key Business Developments
Release Date: May 20, 2025
- Adjusted EBITDAaL: Delivered FY25 group guidance; FY26 guidance between EUR11 billion and EUR11.3 billion.
- Adjusted Free Cash Flow: FY25 guidance met; FY26 expected growth between EUR2.6 billion and EUR2.8 billion.
- UK Merger Impact: Pro forma FY26 impact of EUR400 million EBITDAaL contribution and EUR200 million adjusted free cash flow drag.
- EBITDA Growth in UK: 8% growth in FY25.
- Shareholder Returns: EUR2 billion returned through buybacks and EUR1.8 billion in dividends over the last year.
- Cost and CapEx Synergies: Expected GBP700 million annual synergies from UK merger by the fifth year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Vodafone Group PLC (VOD, Financial) has successfully reshaped its portfolio by selling operations in Spain and Italy and merging with Three UK, which has strengthened its market position.
- The company has returned EUR2 billion to shareholders through buybacks and EUR1.8 billion in dividends, with a new EUR2 billion buyback program starting.
- Vodafone Group PLC (VOD) has achieved significant improvements in customer experience, particularly in the UK and Germany, leading to record low levels of churn.
- The company is well-positioned for medium-term growth in adjusted free cash flow, with two-thirds of this growth coming from expanding assets.
- Vodafone Group PLC (VOD) has strong growth opportunities in Africa and Turkey, with significant potential beyond core connectivity, contributing to its overall financial performance.
Negative Points
- Vodafone Group PLC (VOD) faces challenges in the German market, including a declining broadband base and increased competition in mobile, impacting its financial performance.
- The company anticipates continued ARPU pressure in the German mobile market due to aggressive pricing by competitors.
- The UK merger with Three is expected to result in a EUR200 million adjusted free cash flow drag due to front-loaded investments and integration costs.
- Vodafone Group PLC (VOD) has experienced delays in its fiber build-out in Germany, impacting its ability to compete effectively in the broadband market.
- The company faces challenges in the UK B2B market, with headwinds from managed services and ARPU pressure in mobile, affecting its growth prospects.
