Vodafone Share Price Forecast June 2021 – Time to Buy Vodafone Shares?
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Although Vodafone shares have been flat in recent times, it remains a market-leading brand with a big market share.
Vodafone Group is a British powerhouse in the telecommunications market. Headquartered in the UK, but it operates in western Europe, Asia, and in the African markets. Vodafone is one of the largest mobile operators in Africa, where it also operates the M-Pesa mobile money system.
While Vodafone’s share price has underperformed in the last few months, the company’s dividend yield remains high at 5.9%.
Are you considering buying Vodafone shares but not sure if it’s the right move? This analysis should help you make the best decision.
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Vodafone Shares – What Are The Analysts Saying?
In May, Vodafone’s latest financial year results revealed that the group’s total revenue was €43.8bn ($53.4bn, £37.7bn) down 2.6% for the comparative prior-year period.
The firm blamed the decline on the slow mobile roaming and handset sales during the Covid-19 crisis.
However, looking past the headline numbers, the group’s underlying performance is encouraging. Specifically, in Vodafone’s largest market, Germany, which accounts for 31% of total group revenues, sales increased 7.5%. The company’s European mobile customer base grew by 2% to 65.4 million.
Vodafone shares have been under a lot of pressure since it opened trading on Nasdaq in the early hours of today at $23.18 a share. Vodafone shares are currently trading at $18.33 and up 2.4% in the last 24 hours.
Analysts at CNN Business predict the median view to be at 24.87, with a high estimate of 32.09 and a low estimate of 16.94. The median estimate represents a +35.52% increase from the last price of 18.35.
Analysts at Tipranks expect Vodafone shares to climb to the average price target of $26.70, representing a 45.66% increase from the last price of $18.33.
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Vodafone Shares – Technical and Fundamental Analysis
Vodafone’s technicals are pretty strong, with a 58.42 relative strength index (RSI) showing that Vodafone shares are well below the overbought levels.
The Moving Average Convergence Divergence (MACD) is bearish as it’s below the signal line. The Commodity Channel Index (CCI) is at 45.50.
Over the past few decades, the company has spent billions of euros developing its 5G and Broadband infrastructure.
Vodafone recently selected Ericsson cloud-native dual-mode 5G Core technology to power its core networks in Germany and the UK.
The firm described this as a significant step towards delivering the full potential of 5G services and future innovation to Vodafone’s consumer and enterprise customers in both countries.
While the deployment has already started in Germany, deployment in the UK will take at least five years.
Vodafone also chose Samsung Electronics to supply its 5G network equipment in Britain, signaling a breakthrough for the South Korean company in Europe’s telecoms gear market.
Other firms Vodafone has joined forces with include Dell Technologies. Dell was among the six partners Vodafone selected to build Europe’s first commercial open RAN (radio access network).
The open RAN is a new approach to wireless network architecture which allows mobile operators to mix and match equipment from various suppliers, potentially improving flexibility and reducing costs.
Others include Wind River, Capgemini Engineering, and Keysight Technologies. Vodafone says this would help it build one of the largest Open RAN networks in the world.
Away from 5G and open RAN, Vodafone is also taking advantage of its massive growth in Television viewing. In March this year, the firm said that the use of Vodafone TV had increased by 34% since March 2020.
The operator recently announced that it is offering users free TV packages from now until September 15.
Users with the Vodafone set-top box can sign up for the free package via the Mi Vodafone app while subscribers without can benefit from the offering by viewing Vodafone TV via the online app on smart TVs, smartphones, and so on.
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