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UBS highlights three potential risks as it downgrades Vodafone to ‘sell’.

Vodafone slid on Monday after UBS downgraded the shares to ‘sell’ from ‘neutral’ saying it sees three potential risks.

  • Vodafone Group
  • 03 November 2025 14:18:04
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Source: Sharecast

The bank said Vodafone has made significant progress in reshaping its portfolio, returning cash to shareholders and turning around Vodafone Germany.

"However, with the shares up 34% year-to-date, Vodafone is trading on a valuation premium to peers and we think material risks have been overlooked," said UBS.

Firstly, it pointed to rising competition in German Multiple Dwelling Units.

Secondly, it noted a de-rating in Vantage Towers from the loss of Spanish revenues and thirdly, it pointed to the potential loss of the 1&1 NRA should there be German mobile consolidation.

The 1&1 NRA refers to a national roaming agreement (NRA) between Vodafone Germany and 1&1 Mobilfunk GmbH in Germany.

UBS nudged the price target up to 80p from 72p.

At 1410 GMT, the shares were down 3.1% at 89.28p.

FTSE 100 ( UKX )

ISIN: N/A
Exchange: London Stock Exchange
Sell:
0.00
Buy:
0.00
Change: 62.12 ( 0.64 %)
Date:
Prices delayed by at least 15 minutes

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