Vodafone Share Price Forecast - Buy, Sell or Hold?

Jitanchandra Solanki
10 Min read

Vodafone’s share price hasn’t performed well over the past few years and has been languishing at 20-year lows for the past few years. However, they have started to gain some traction this year and not just because of the current 5.78% dividend yield.  

Activist investor Cevian Capital has taken a stake in the FTSE 100 company and has been holding talks with Vodafone’s management team on how to improve performance. Investors are now keen to learn more about the Vodafone share price forecast.  

In this article, we go through the Vodafone share price broker forecasts and how to invest with competitive fees.  

Vodafone Share Price Forecast UK 

Is Vodafone stock a good buy? According to the 11 analysts polled by MarketBeat, there are currently 11 buy ratings on the stock and zero hold or sell ratings. Analysts at Goldman Sachs has one of the highest price targets on the stock of GBX 180.00p, while analysts at Credit Suisse have one of the lowest price targets on the stock at GBX 150.00p - both issued at the beginning of this year. 

Source: MarketBeat, 31 January 2022 

Even though there are more buy ratings for the Vodafone Group PLC share price forecast, it does not mean the share price will go up immediately. However, at the time of writing Vodafone’s share price was trading around GBX 130.02.  

This means the stock is trading well below the lowest price target of the Vodafone share price broker forecasts. A move back towards the average Vodafone share price forecast of GBX 167.67 represents a more than 25% push higher.  

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Vodafone Share Price Forecast & History 

While global stock markets crashed during the pandemic, Vodafone’s share price had been struggling since 2018. In fact, from the high of 2018 to the most recent low in March 2020 the stock has fallen around 60%.  

Why are Vodafone shares going down? During this period of time, Vodafone had been struggling with a decline in global sales and a high level of debt. The pandemic also took its toll on Vodafone’s share price as there was a huge decline in roaming revenue.  

However, the Vodafone share price forecast 2021 experienced some positive elements. The company sold off some of its European mobile tower's business with the rest due to be spun off into a separate company that will be listed on the Frankfurt Stock Exchange.  

The high debt load comes from Vodafone’s $21.3 billion acquisition of Liberty Global’s cable systems in the Czech Republic, Germany, Hungary and Romania. The aim is for Vodafone to be “Europe’s leading converged operator with 116.3 million mobile customers, 24.2 million broadband customers and 22.1 million TV customers across 13 European countries.” 

Vodafone Share Price Forecast Buy or Sell Analysis 

Is VOD a buy now? From the start of this year, Vodafone’s share price is already up nearly 15%. The market has liked the news that activist investors Cevian Capital took a stake in the company and is pushing for some major changes in the telecoms giant.  

Cevian has already been talking to Vodafone’s management team is trying to help them simplify their business offering and make it a more focused operating company. In the long term, this could potentially benefit shareholders.   

Source: Admirals MetaTrader 5, VOD, Monthly - Data range: from 1 Jan 1990 to 31 Jan 2022, performed on 31 Jan 2022, at 8:30 am GMT. Please note: Past performance is not a reliable indicator of future results. 

In the above long term, monthly price chart of the Vodafone London share price forecast, you can see that for much of 2021, the Vodafone share price was hovering at 20-year lows around the GBX 110.00 price level. Considering the long term decline before this, it’s a sign that the price action could be bottoming out.  

A break above the GBX 143.00 price level could be a bullish sign for the share price as buyers struggled twice in 2021 to break through it.  In fact, from the low of 2022 to the average price target for the stock at GBX 167.67, it represents a more than 45% push higher.  

Vodafone shares also provide a 5.78% dividend yield which is a source of income for many shareholders, although this value will change over time. But, this extra source of revenue is well worth taking into consideration if you are analysing the Vodafone share price forecast 2025 and beyond. 

However, there are some major headwinds that could affect Vodafone’s share price. The debt load is very high and it may take some time for that to be paid down. Rising interest rates around the world are also a concern on how expensive the debt could become.  

While technically the price is being supported at 20-year lows, a break below this level on negative sentiment could confirm a downtrend and a lower share price for the future.  

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Vodafone Share Price Forecast Timing 

Using a combination of fundamental analysis and technical analysis can be effective when investing over the long term.  

Many stock market investors will use fundamental analysis to learn more about big picture factors affecting the share price such as economic trends and changes in corporate management.  

Technical analysis is typically used to identify how buyers and sellers are moving price and what the overall sentiment and trend of the stock is.  

The Technical Insight Lookup indicator which can be found in the Premium Analytics section from the Admirals Trader’s Room provides real-time, actionable technical analysis trading ideas on thousands of stocks from around the world.  

Source: Admirals Premium Analytics, 31 January 2022 

The screenshot above shows a search for Vodafone’s share price from the Technical Insight Lookup indicator. The list is categorised into short-term (2 – 6 weeks), intermediate-term (6 weeks – 9 months) and long-term (more than 9 months).  

At the time of writing, it is currently showing 25 technical events that are taking place on the stock. The intermediate-term and long-term technical events are also pointing towards the potential for further upside in the stock.  

You can click on any one of the technical events and read more about what is happening, with a picture explaining the technical setup. This is a great way to learn more about technical analysis and to aid in your current decision-making process.  

You can access this tool from the Admirals Premium Analytics section! 

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How to Invest in Vodafone Shares 

If you are interested in investing in Vodafone shares then you can do this from a variety of different accounts that Admirals has to offer: 

  • Invest.MT5 Account. This account allows you to buy shares and ETFs from 15 of the largest stock exchanges in the world.  
    • Enjoy a low minimum commission of just 0.1% when trading UK shares, with a low minimum transaction fee of just 1 GBP which can be useful for small accounts. 
    • Trade long and short! With CFDs, you merely speculate on the price movement of the market rather than owning the underlying shares.  
    • Trade on margin! For retail traders you can open a position in Vodafone with just 20% of the full investment needed to be held as margin. This can amplify profits and losses so be careful! 
  • Demo Account. You can open a demo account for FREE and test out all of the features for yourself until you are ready to go live.   

Regardless of which account type you open, you will have instant access to the world’s most popular trading platform MetaTrader 5. This can be used on desktop, web or mobile.  

Why Invest in Vodafone Shares with Admirals? 

✔️ Admirals is authorised and regulated by the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Jordan Securities Commission (JSC) and others.

✔️ Open an Invest.MT5 account to invest in stocks and ETFs to build a long-term portfolio and a passive stream of income through dividend investing! 

✔️ Invest in stocks and ETFs from 15 of the largest stock exchanges in the world from just 0.02 USD per share on US stocks and 0.1% commission on UK stocks! 

✔️ Access real-time, actionable investing ideas through the Premium Analytics Technical Insight Lookup indicator.  

Did you know that you can test ALL of these features by opening a FREE demo trading account? 

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 INFORMATION ABOUT ANALYTICAL MATERIALS:  

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:  

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. 
  2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest. 
  4. The Analysis is prepared by an independent analyst (Jitan Solanki, hereinafter “Author”) based on personal estimations. 
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis. 
  6. Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.

 

 

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