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Opinions Darren Sissons
Vodafone Group PLCVODCOMMENTAug 11, 2017
Darren SissonsStock 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
The market has mistakenly perceived this as a UK company, but most of their earnings come from outside the UK. Their biggest market is actually Germany. There have been a number of recent developments. They have pushed the Indian assets into an ID cellular, which enabled them to de-consolidate some debt. All of that has happened at the same time where the Europeans have now pushed the fibre to the home, and it is a 1st time we are seeing revenue growth for European telcos for the last 15 years. He thinks there is more upside.