Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Vodafone Group Slumps on Analyst Downgrades

LONDON -- After having seen something of a resurgence in recent weeks, shares in Vodafone (LSE: VOD  ) (NASDAQ: VOD  ) dropped off today as the market opened, with many analysts downgrading from buy to neutral.

Citigroup was one who downgraded Vodafone, citing elevated merger and acquition risk:

Addressing shortcomings in Vodafone's convergence offering may require M&A in both consumer and business, in our view. In B2B this is unlikely to require a huge deployment of capital but the numbers get larger to achieve a sizable consumer footprint. Assets are scarce with cable and, in places, unbundled local loop operators, still short of national reach.

As one of the biggest constituents of the FTSE 100, the U.K.'s premier market followed suit and on Monday was dragged down with the world's largest wireless phone company by market cap.

The downgrades come ahead of Thursday's trading update for the quarter ended Dec. 31, 2012, which has added to caution among investors. Vodafone's shares fell 2.5%, or 4 pence, back down to 169 pence.

However, this "investor caution" must be noted, and that the multinational telecom company has not actually released any firm news to justify investors jumping ship. I, for one, await Thursday's interim management statement not as a panicked shareholder but as a Foolish one, aware of the long-term benefits that holding the shares for at least three to five years can bring me.

So, too, will City superinvestor Neil Woodford, who owns a significant holding of Vodafone within his high-yield portfolios. The Motley Fool has produced a special report on the eight blue-chip companies favored by Woodford, now updated for 2013. It's completely free, but available for a limited time only. Just click here to have the report delivered instantly to your inbox.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2234068, ~/Articles/ArticleHandler.aspx, 10/24/2016 6:45:04 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
VOD $27.77 Down -0.05 -0.18%
Vodafone CAPS Rating: ****
VOD $224.60 Up +1.05 +0.47%
Vodafone CAPS Rating: No stars
C $49.57 Down -0.01 -0.02%
Citigroup CAPS Rating: ***