Vodafone Shares Inch Towards 52-Week Highs Following Barclays Upgrade

Vodafone shares (LON:VOD) are moving higher today, 1.17% to the good at 95p, as the stock moved within touching distance of its 52-week high early in the session. The uptick follows a recent upgrade from Barclays, putting bulls on alert for a breakout.

The markets reacted positively to Barclays' decision to upgrade Vodafone from “Equal Weight” to “Overweight,” also raising the price target to 120 pence from a previous 100 pence. This adjustment suggests a potential upside of approximately 27.8% from the stock's most recent close. The analyst based this upgrade on expectations of a strategic turnaround, particularly highlighting Vodafone's ambition to disrupt the UK broadband market.

Supporting this shift, Barclays also increased its stake in Vodafone to 6.11% of voting rights, demonstrating a tangible investment in the company's future.

Operationally, Vodafone completed its merger with Three UK back on May 31, coinciding with a bullish run in the shares. The combined entity is projected to unlock £700 million in cost and capital expenditure synergies, which should accelerate the deployment of 5G technology and enhance service offerings. Following the merger, VodafoneThree announced substantial investment deals with Ericsson and Nokia to construct a leading UK network. The plan aims to provide nearly three-quarters of the population with access to the fastest 5G speeds within the first year, increasing to 90% within three years, representing a significant upgrade to the UK's digital infrastructure.

Vodafone's financial performance has also contributed to the positive outlook. In its first-half fiscal 2026 results, the company reported a 7.3% year-on-year increase in total revenue to €19.6 billion, with service revenue rising 8.1% to €16.3 billion. Adjusted EBITDAaL climbed 5.9% to €5.7 billion. Driven by these results, Vodafone increased its full-year guidance and announced its first dividend increase in eight years, introducing a new progressive dividend policy with an expected 2.5% increase for the financial year.

Other analysts have also weighed in on Vodafone's prospects. Deutsche Bank increased its price target to 140 pence with a “buy” rating, while UBS and Citigroup have maintained neutral stances. The consensus reflects a cautiously optimistic outlook, acknowledging Vodafone's potential for growth amid its strategic initiatives.

Strategic mergers, substantial network investments, improved financial performance, and bullish analyst sentiment  have combined to boost confidence in Vodafone. With bulls eyeing up the highest share price in years, and a potential breakout, there are plenty of eyes likely to be on this one in the sessions ahead.