Vodafone upgraded to "outperform" by Australian bank Macquarie

Clara Guibourg
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Vodafone's shares are down 3.4 per cent since the start of the year (Source: Getty)

Looks like Vodafone is turning a corner.

At least according to Australian bank Macquarie, which has upgraded the British telecoms giant from “neutral” to “outperform”, suggesting a 235p price target.

This will come as welcome news for Vodafone’s shareholders, as stocks have fallen 3.4 per cent in the year to date, with the company facing tough business conditions in some of its key markets.

Shares fell further when talks over a much-anticipated possible merger with Liberty Global fell through at the end of September. A merger could have created a £100bn colossus.

But now things are looking up again for Vodafone, according to Macquarie, which released a note on Monday expecting the telecoms company to deliver 3.3 per cent sales growth in its next full-year results.

At last the operational outlook for Vodafone is constructive on a 12-18 months view. We believe the positive combination of European improving service revenue trends, growth returning to Europe, the end of Project Spring and a cost focus are likely to drive the share price.

Vodafone shares were trading at 208.4 in mid-afternoon trading.

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