Berenberg Updates Vodafone Forecasts on 'Strong' Fiscal Q1 Result, Stake Deals; Buy Rating Kept

06:27 AM EDT, 10/02/2026 (MT Newswires) -- Berenberg revised its forecasts for Vodafone Group (VOD.L) as analysts took note of recent updates involving the company, including its latest results, stake transactions and court rulings. "We update our forecasts due to: 1) the strong Q1 2027 results (see At upper end of guidance, driven by Vodacom and Germany); 2) the recent acquisition of the 49% stake in VodafoneThree; and 3) the recent negative ruling from the European Court of Justice (ECJ) on historical price increases," the research firm said in a Friday note. Analysts also see "increasing optionality" for the British telecommunications group from a potential German deal, which they said would carry "significant advantages" over a potential Telefónica (TEF.MC) transaction. "On 10 July 2026, Vega (owned by the Xavier Niel family) acquired a c16% share of the voting rights in Vodafone from Etisalat, and later raised its stake to c19%. We wonder if Mr Niel's involvement increases the likelihood of Vodafone looking to acquire 1&1, driving German consolidation," analysts added. As such, Berenberg increased its EBITDA forecasts for fiscal 2027 to 2029 by 1% to 2% on a like-for-like basis as it still consolidates Safaricom, with VodafoneThree already consolidated. Analysts also raised their adjusted free cash flow projections by 7% to 9% across the three-year period, driven by "modest" EBITDA upgrades and a reduction in lower assumptions for minority dividend payments. Subsequently, the stock's price target increased to 1.40 pounds sterling from 1.23 pounds, with an unchanged buy rating.