Vodafone stock gained 2.18 percent as Berenberg raised its target

Published on 10/04/2026 at 21:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Vodafone stock drew a higher valuation from Berenberg, which lifted its target from GBp 123 to GBp 140 on October 2, 2026. Q1 FY27 service revenue rose 5.2 percent.

Architektur-Render eines beleuchteten Rechenzentrums mit Glasfassade in der Dämmerung — Vodafone Group plc (ISIN GB00BH4HKS39) betreibt moderne Rechenzentren, dargestellt in diesem futuristischen Architektur-Render bei Nacht, Illustration mit AI erstellt.

Vodafone stock (ISIN GB00BH4HKS39) closed at GBp 126.80 on the London Stock Exchange on October 2, 2026, up 2.18 percent from GBp 124.10. The move followed Investing.com reporting on October 2 that Berenberg raised its price target from GBp 123 to GBp 140 while keeping a Buy rating. The change puts the target 10.41 percent above the October 2 closing price.

Berenberg raises target to GBp 140

Berenberg based its revised view on Vodafone's first-quarter performance, the acquisition of the remaining 49 percent of VodafoneThree and the prospect of German telecom consolidation, according to Investing.com. The broker forecasts fiscal 2027 free cash flow of EUR 2.89 billion, at the top of Vodafone's EUR 2.6 billion to EUR 2.9 billion guidance range.

The valuation case is tied to cash generation rather than a single quarterly number. Berenberg expects Vodafone's core earnings to grow 1 percent to 2 percent annually from fiscal 2027 through fiscal 2029 on a like-for-like basis, while it sees free cash flow growing at more than 10 percent annually from fiscal 2026 through fiscal 2030.

Q1 growth sets the operating base

Vodafone's investor-relations page reported Q1 FY27 organic service revenue growth of 5.2 percent and organic adjusted EBITDAaL growth of 6.2 percent, with broad-based growth across its segments, Vodafone said. These figures give the October 8 capital markets day a clear test: management must show how operating growth converts into recurring cash flow and shareholder returns.

The company also faces execution risks. Berenberg pointed to the pace of Three UK merger savings and continued price competition in Germany as factors that could weigh on service revenue, according to Investing.com.

Vodafone stock stays below yearly high

Vodafone stock traded within a GBp 124.15 to GBp 128.05 range on October 2, with volume of 52,628,301 shares. Its 52-week range was GBp 83.40 to GBp 132.05, while market capitalization stood at GBP 29.4 billion on the same date.