(CercleFinance.com) – Vodafone stock gained nearly 4% in London, as BofA announced on Thursday that it had raised its opinion on the stock from ‘neutral’ to ‘buy’ with a price target raised from 130 to 131 pence.
In a research note, the research firm explains that market sentiment around the UK mobile operator has now fallen to multi-year lows.
So much so that the title now seems particularly cheap, especially since it could benefit from upward revisions to analysts’ earnings estimates with the ebb in energy prices.
Despite the unfavorable market sentiment surrounding the stock, a few strategy elements could prove supportive and warrant a ‘more constructive’ view on the stock, BofA continues.
The analyst mentions in particular the scenario of a reallocation of capital and a restructuring of the business portfolio which could make it possible to invest in priority in growth in Germany.
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