Vodafone Downgraded to Neutral as Near-Term Challe…
From Financial Modeling Prep: 2025-03-24 05:14:00
Bank of America downgrades Vodafone from Buy to Neutral due to tough financial outlook. The impending merger with Three and market conditions in Germany could impact performance. Merger with Three valued at £16.5 billion may dilute cash flow by 35% over two years, potentially lowering cash yield below sector average. In Germany, competitive pricing pressures tighten margins.
Analysts project Vodafone’s EBITDA growth to be -1% in fiscal year 2026. Tight dividend cover and limited buffer for earnings slippage add to caution. Vodafone faces challenges in the short term despite long-term potential. Investors should monitor the company’s financial health using tools like the Company Rating and Ratios APIs to assess ongoing risks.
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