- Vodafone Group
- 22 January 2026 10:46:06
Source: Sharecast
It noted that the shares have enjoyed somewhat of a renaissance since the bank’s last note and first-half results, which saw guidance and the dividend raised, a year earlier than DB expected.
"The rally (+45% over a year, 20% since our mid Oct note), can be accounted for by similar at Vodacom (+39% in EUR) and a much greater rise (from a very low base) of the group's European stub whose equity is still 30% estimated free cash flow (ex spectrum/restructuring but also ex £700m of UK synergies)," DB said.
The bank said improving operations, particularly in Germany, and the cumulation of €2bn annual buybacks are a further assist.
"The market dislikes sum-of-parts. Vodafone may make the math easier via associate disposals," it said, adding that in the near term, free cash flow is boosted by Kenyan telecom Safaricom.
At 1040 GMT, Vodafone shares were up 3.2% at 104.25p.