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Opinions Paul Harris, CFA
Vodafone Group PLCVODBUYNov 22, 2012
Paul Harris, CFAStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Premium contentOur PAST TOP PICK with VOD has triggered its stop at $9. To remain disciplined, we recommend covering the position at this time. When combined with previous buy recommendations, this will result in a net investment loss of 4%.
Premium contentPremium contentWe reiterate VOD, who is teaming up with Amazon to provide satellite based service into Africa and Europe, as a TOP PICK. The project is set to begin in 2024 and avoids land-based fibre optic investment. It trades at 13x earnings and under book value, while supporting a 20% ROE and growing cash reserves. We continue to recommend a stop at $8, looking to achieve $12 -- upside over 25%. Yield 0.9%
(Analysts’ price target is $13.72)Premium contentThe recently announced proposed merger with another network provider has great upside potential and is called a "game changer" for bringing more competition to the UK mobile market, while allowing economies of scale for a 5G rollout. The company trades at 9x earnings, under book value, is growing cash reserves, and supports a 20% ROE. We recommend placing a stop-loss at $8, looking to achieve $13 -- upside potential of 33%. Yield 0.9%
(Analysts’ price target is $13.38)
A hard one to look at. You will see red if you have held it for a while. This is due to their spinout. Your book price is higher due to the fact it does not take into account of the dividend from the spinout. Tends to build up companies and then spins them out. There is growth however. Brexit was the biggest impediment for them. UK based companies now should do pretty well. Good for income.
Darren SissonsNot a tech company, but does provide access to the internet. Overexpanded and took on a lot of debt. Great business in the UK and Europe. How do they integrate 5G and the cable business? Will have a lot of capex going forward. He'd rather own a Canadian telecom like BCE. Good yield.
Darren Sissons
Major mobile phone company in Europe. Biggest asset is Verizon. Came off and pays a nice yield. Is concerned they may cut the yield. It had very high debt levels and they sold assets over the last couple of years and reduced it. They realized a lot of value when they sold off assets. Buy it here because it will grow slowly and give you a nice dividend.