Vodafone Shares Rally (VOD): Price Target Raised as Analyst Upgrades to Buy

Vodafone shares (LON:VOD) have been given a boost today,  driven by an analyst upgrade, that brings a fresh bullish price target of 119p. The positive momentum builds on a series of favourable developments, including a major merger and encouraging financial results.

The London-listed shares are currently trading 2.89% higher at 103.40 pence, extending an impressive rally of 52.96% over the past twelve months. This surge reflects growing market confidence in Vodafone’s ability to deliver sustainable growth and shareholder value.

Berenberg has upgraded Vodafone to a ‘Buy’ rating from ‘Hold’, significantly increasing the price target to 119 pence from the previous 82 pence. This upgrade is underpinned by a belief that Vodafone can achieve sustainable free cash flow and dividend growth in the coming years, bolstered by a strong fiscal Q2 report. The analyst also highlighted the company’s “substantial future capacity for value-creation opportunities, with an increasingly robust balance sheet”.

Prior to Berenberg’s upgrade, Barclays also upgraded Vodafone to ‘Overweight’ from ‘Equal Weight’, raising its price target to 120 pence from 100 pence. Barclays cited expectations of a strategic turnaround, highlighting Vodafone’s “challenger mindset” in the UK broadband market, stabilization in Germany, and continued growth in Africa. They suggested that 2026 could mark an inflection point after years of declining earnings.

Price Targets

Vodafone’s recent financial performance has provided a solid foundation for this renewed optimism. The company’s fiscal Q2 report revealed a 9.2% year-on-year increase in adjusted EBITDA after leases, reaching €2.98 billion. Revenue also saw a healthy 11% rise to €10.22 billion. The company has demonstrated a return to top-line growth in Germany, a key market, and positive performances in the UK, Turkey, and Africa. As a result of this performance, Vodafone has raised its full-year guidance, anticipating results at the upper end of previous forecasts.

Adding to the positive sentiment is the completion of Vodafone’s merger with Three UK in May 2025. This strategic move created the largest mobile operator in the UK, branded as VodafoneThree, and is projected to unlock £700 million in cost and investment savings. The merger is also expected to accelerate the rollout of 5G services, enhancing Vodafone’s competitive position in the UK market.

The market’s positive reaction to the Berenberg upgrade suggests that investors are increasingly confident in Vodafone’s strategic direction and ability to execute its growth plans. The company’s improving financial performance, coupled with the potential synergies from the Three UK merger, has created a bullish narrative on the Street. Whether Vodafone can sustain this momentum remains to be seen, but the recent developments have undoubtedly given bulls something to get behind.