Bond.az reports that BofA Securities has slashed its rating on Vodafone Group Plc to “underperform” from “neutral,” cutting the price target to 98 pence from 115 pence. The downgrade reflects a structural shift in earnings toward emerging markets.
Shares fell 2.11% to 108.975 pence in London. Analysts note that by fiscal 2028, 55% of operating free cash flow will come from emerging markets, up from 41.5% in fiscal 2025.
The bear case centers on Germany, where BofA forecasts EBITDAaL declining from €4.13 billion in fiscal 2027 to €3.97 billion by fiscal 2029. The brokerage also highlights FX pressures from Turkey, South Africa, and Brazil.
