It’s time for a rethink about the way investors look at Vodafone PLC (LON:VOD), according to Barclays.
Forget worries about Germany, Spain/Italy and debates about how much the free cash flow might be worth that admittedly, says the broker, give an unexciting result about the future.
Instead, remember these areas only account for 15% of the business and that 85% is in Infrastructure, B2B, Emerging Markets and German Consumer, where Barclays believes the outlook is much more constructive.
“We would expect Vodafone to move gradually towards this way of reporting, which we believe could (finally) unlock value in the SOTP - our price target remains 165p.”
Shares today were down 2.5% at 113.6p having slumped 20% since a trading update in May.