Berenberg Lifts Vodafone Rating, Price Target Amid Positive Free Cash Flow, Dividend Growth Outlook

09:55 AM EST, 01/07/2026 (MT Newswires) -- Berenberg upgraded Vodafone Group's (VOD.L) rating to buy from hold, citing the British telecommunications group's ability to deliver sustainable free cash flow and dividend growth over the next four years. "We expect Vodafone management to: 1) deliver modest growth and improving profitability in Germany, helped by improving market conditions; 2) effectively execute the integration of Three UK, realising its synergy targets in the process; and 3) be sensible stewards of capital, focusing on core markets and on further simplifying the relatively complex group structure (one that involves a number of joint ventures (JVs) and minority holdings)," analysts said in a note released Wednesday, raising the price target to 1.19 pounds sterling from 0.82 pound. The research firm also views the company as having significant capacity for further share buybacks over the next 12 months, small bolt-on M&A and other value-creation opportunities. Analysts also updated their financial projections for fiscal years 2026 through 2028, including higher EPS estimates over the three-year period and increased free cash flow forecasts over the long term.