It’s a remarkable turnaround for a stock that spent years grinding lower, but it raises an obvious question. How much higher could it go from here? And how much money could an investor realistically make with £5,000 today?Let’s investigate.

What the forecasts are saying

The honest answer is that the analyst community is more divided on Vodafone shares than most. At one end of the spectrum, the most optimistic projections have price targets as high as 150p, which on a £5,000 investment would return around £6,778 by July 2027.

At the other end, other analysts still see the shares drifting as low as 85p, which would turn that same £5,000 into just £3,840.

Looking at the average consensus, Vodafone shares are predicted to land close to 111p, which is essentially where the telecoms stock is trading today. So which forecast should investors be listening to?

Digging deeper

Seeing a split opinion on this business isn’t too surprising. Vodafone’s in the middle of a restructuring attempt. And right now its simply too soon to tell if current efforts will be successful.

That’s why the range of price targets is so wide. Some analysts are predicting success while others expect Vodafone to fail. And to be fair to the bears, this isn’t the first time new management’s tried fixing Vodafone’s problems.

However, it’s worth pointing out that some early positive operational momentum is starting to materialise. Vodafone’s 2026 fiscal year results (ended in March) were genuinely encouraging.

Total revenue grew 8% to €40.5bn, operating profit swung from a €400m loss to a €2.8bn gain, and adjusted free cash flow hit €2.6bn, coming in at the top end of guidance.

But what’s most exciting of all is what’s coming next. In its 2027 fiscal year, which kicked off a few months ago, management anticipates free cash flow to potentially expand to as high as €2.9bn courtesy of emerging synergies with its Three UK merger.

And with its Africa segment also delivering more double-digit organic growth, this latest turnaround attempt already appears to be far more successful than previous efforts.

So should investors consider being aggressive?

What could still go wrong?

Despite the improving trajectory, there are a couple of things worth watching closely. Net debt’s still a persistent problem and now stands at €25.4bn following the Three UK consolidation. At the same time, Vodafone’s largest core market, Germany, remains pretty soft.

Organic revenues have recently returned to growth but only by a tiny margin. And if performance doesn’t pick up, Vodafone’s recovery could prove to be a slow process that ultimately causes the business to lag its rivals.

The bottom line

Vodafone’s a simpler, stronger business than it was three years ago, and the free cash flow trajectory over the next few years looks genuinely compelling.

The lack of meaningful progress in Germany is why I’m personally not ready to jump in and buy shares today. But if the business continues to deliver, I may have to reconsider. That’s why I think investors should already start investigating this business for a potential future investment.

Should you invest £5,000 in Vodafone Group Public right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Vodafone Group Public made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post Here’s the latest Vodafone share price forecasts for 2027 appeared first on The Twelfth Magpie.

We are all bound by the laws of physics, which indicate that time travel is unlikely. That said, one theoretical particle known as a tachyon — which travels faster than the speed of light and has an imaginary mass — would likely travel backwards in time. Anyway, how has the Vodafone share price moved lately?

Volatile Vodafone

As I write, the Vodafone share price stands at 117.8p, valuing the UK’s leading mobile-network operator at £27.1bn. This ranks the telecoms group at #29 by market value in the elite FTSE 100 index.

Vodafone stock has surged over the past week. The shares leapt 20.1% in five trading days after news emerged that French billionaire Xavier Niel paid £4.4bn to acquire a 16.2% stake in this British business. This makes telecoms tycoon Niel and his Vega group Vodafone’s largest shareholder by a long way.

While the shares have risen a mere 4.7% over one month, they have leapt 18% over six months. And despite soaring 44.5% over one year, they are almost unchanged over five years, rising just 1%.

Note that these gains exclude cash dividends, which were previously very generous from Vodafone. However, the firm halved its yearly payout in 2024 from €0.09 (7.7p) to €0.045 (3.85p), sending the shares tumbling.

In short, Vodafone shares have been pretty volatile for years, crashing hard from February 2022 to April 2025 before roaring back to life.

Vodafone value?

Disclosure: my family portfolio bought Vodafone shares in December 2022, paying 90.2p a share for our stake. I bought into this business because I saw it as one of the FTSE 100’s ‘fallen angels’ — solid companies with temporarily depressed share prices. My timing was far from perfect, with the shares trading at just 80.2p by mid-July 2025. Oops.

Nevertheless, it seems that value investing — buying and holding cheap shares — is yet again paying off for my family. We now have a paper gain of 30.6% to date. Even better, we reinvested all Vodafone dividends into buying yet more shares. This has turbocharged our returns, turning Vodafone into a pretty decent ‘recovery play’ investment.

To answer the question in my title, £1,000 invested in Vodafone stock a year ago is now worth £1,445. Adding roughly £45 in dividends sums to £1,490 — a total return of 49% over one year. That’s more than 10 times the interest from top savings accounts, but always remember that shares are far riskier than cash deposits.

Do we keep our Vodafone shares? As a value/income investor, I like their dividend yield of 3.4%, which beats the FTSE 100’s yearly cash yield of 3%.

Of course, economic downturns in Vodafone’s key markets — Germany, the UK, and Europe — could harm its revenues, profits, and cash flow. Likewise, net debt of €25.4bn (£21.7bn) might constrain future growth. Even so, we are on board for the long run!

Here’s one UK share investors are raving about…

What income stock do we like better than Vodafone Group Public right now?

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Cliff D’Arcy has an economic interest in Vodafone Group shares.

The post How much is £1,000 of Vodafone shares a year ago worth now? appeared first on The Twelfth Magpie.

Earlier this week, the OECD declared three-quarters of London jobs “highly exposed” to AI. So is the idea of humans paying phone bills really an investable one?

Who’s buying?

Niel is Europe’s foremost telecoms disruptor. He founded Iliad, whose Free brand broke the French mobile market in 2012 with €2-a-month contracts.

Importantly, he’s also spent two decades buying and improving telecoms businesses. And he thinks there’s plenty of opportunities ahead with Vodafone.

The FTSE 100 firm’s European costs are still well above his standards, it has infrastructure that can be monetised, and scope for further in-market consolidation. Those are all opportunities.

The strategy is to take “quality assets, strong brands, leadership positions and a diversified geographic footprint” and contribute “deep sector expertise and operational know-how”. And that could work.

The question, however, is whether other investors should be interested. As someone who isn’t a serial telecoms operator, is Niel’s involvement a reason for me to join the party?

Should I join in?

Warren Buffett warns that the five most dangerous words in business are ‘everybody else is doing it’. And copying a billionaire is the investing version of this.

When Niel invests, he gets influence, board access, and 25 years of running networks. The rest of us get shares in a capital-intensive industry where returns have been poor for years.

There are a couple more things worth noting. One is that e& – the seller of the stake Niel is buying – is selling at 112.5p, which is barely higher than what it paid in 2022. 

Another is that Niel is prohibited from launching a full takeover bid for at least six months. So the chances of a full acquisition bid are very low – not that this is enough of a reason to buy anyway.

In other words, I don’t see the latest news as a reason to consider buying the stock. But there are other reasons for optimism that are worth paying attention to.

The bull case

e& didn’t get a good return on its Vodafone investment. But the business has been going through something of a transformation recently.

It’s sold off its Spanish and Italian divisions, resulting in more cash and greater simplicity. And its competitive position has also strengthened.

The 2025 merger between Three and Vodafone took the UK from four mobile networks to three. The result was less competition and an anticipated £700m in annual savings by 2030.

Those are both genuine improvements that address some of the company’s biggest issues. And Niel thinks the business is ready for growth as a result.

There’s a real sense in which he’s the expert and I think the stock looks more attractive now than it has done in some time. But there’s more to an investment than that.

My verdict

Niel’s investment in Vodafone might work. At the very least, the man’s record demands respect. 

Investors should be wary, however, about chasing a big name into a position. What if he subsequently changes his mind – for whatever reason?

For those of us without his advantages, though, I think there are more obvious opportunities elsewhere. Even among turnarounds, I’m focusing on names that I see as more promising.

Should you invest £5,000 in Vodafone Group Public right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Vodafone Group Public made the list?

Stephen Wright does not own shares in any of the companies mentioned.

The post Why this FTSE 100 underperformer just surged 13% in a day appeared first on The Twelfth Magpie.

That means assessing true value, market resilience and structural integrity. I need to know they’re in it for the long run.

How does that look? A clear, realistic roadmap, rock-solid management and exposure to persisting trends with lasting demand. With that in mind, here are two names that stand out — and one that gives me pause.

Vodafone Group

Vodafone (LSE:VOD) has struggled for ages, touching 67p in May 2025 — a near 30‑year low. A recovery’s already on track, up 35% in the past year, but the valuation still looks low, in my opinion.

On adjusted numbers, 2026 revenue grew 8% to €40.46bn, with free cash flow climbing 2.9% to €2.6bn. Plus, the dividend grew for the first time in years, up 2.4% to 4.6c per share. So whatever it’s doing, it seems to be working.

Strategically, it signed 10‑year deals with Microsoft and Google, committing around $1.5bn to generative‑AI and Azure migration, plus a separate “billion‑plus” partnership to deploy Google’s GenAI devices across Europe and Africa. Needless to say, it’s very well-positioned to benefit from AI demand.

The main risks I see are high leverage, tough European regulation and execution on its German turnaround. But if management delivers, today’s low valuation could lead to decades of growth.

British Land

British Land’s (LSE: BLND) share price has had a rough ride, down 19% over five years. Yet the FY25 numbers look surprisingly solid: assets are 567p per share, while the shares trade around 414p – a big discount to underlying asset value.

And with earnings per share (EPS) around 28.5p, the 23.12p dividend is fully covered, rising 1.4% on the prior year.

Key FY25 metrics include:

• Portfolio occupancy 98% (retail parks 99%).
• Estimated rental value (ERV) growth: 4.9%.
• Loan‑to‑value: 38.1%.
• Undrawn facilities and cash: £1.8bn.

Still, macro volatility’s real. If interest rates remain high and the appeal of income weakens, the shares could stagnate. That might force a dividend cut if earnings suffer.

But the recent pivot into retail parks, campuses and urban logistics is why I’m still bullish on British Land. Basically, it’s moving capital out of older shopping centre assets and into higher-growth areas.

CEO Simon Carter highlighted “above inflation rental growth” and strong demand for retail parks and offices, which gives him “confidence for the future”. 

But while these two shares look good to me, there’s one I’m less keen on.

Why I’m avoiding Ocado (for now)

Which brings me to Ocado (LSE:OCDO). It’s doing alright – FY25 group revenue was £1,361.5m, with adjusted EBITDA of £178m. Yet underlying cash flow was negative £213m and statutory profit of £395m was largely driven by a one‑off gain from deconsolidating Ocado Retail.

Plus, capital expenditure for FY25 is guided at around £300m, reflecting a capital‑intensive business model.

Analysts remain optimistic but with online grocery automation looking increasingly crowded, I struggle to see a resilient enough moat that equates to decades of growth.

I’d love Ocado to prove me wrong – I just don’t see enough hard evidence yet for a long‑term, income‑focused portfolio.

Final thoughts…

Heading into H2 2026, Vodafone and British Land both look like classic ‘unloved but interesting’ FTSE shares. For patient investors willing to think in decades, not months, they both warrant a closer look.

Should you invest £5,000 in British Land Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if British Land Plc made the list?

Mark Hartley owns shares in British Land.

The post Here are 2 FTSE shares I’m excited about this July — and 1 I’m avoiding appeared first on The Twelfth Magpie.

Lloyds is up 29.7% over the last 12 months, while Vodafone has done even better, climbing 48.8% over the same period. And anyone who’s already put £1,000 to work last June could now be sitting on anywhere between £1,297 and £1,488.

So with both stocks now trading close to or above the £1 mark, the race to £2 is well and truly on. But which one gets there first?

Can Lloyds keep climbing?

Let’s start with the British banking giant. In the first quarter this year, Lloyds’ net income grew 9% to £4.8bn while delivering a chunky return on tangible equity of 17%. That’s well ahead of management’s own guidance. And in the words of CEO Charlie Nunn, the bank is showing a “sustained strength in financial performance.”

That said, there are some genuine points of concern for investors to consider. It’s no secret that Lloyds’ performance is highly sensitive to the UK economy. And with inflation, particularly for energy prices, expected to hit households and businesses later this summer, the risk of higher default rates on loans is starting to rise.

After all, beyond being squeezed by higher prices, the Bank of England may be forced to respond with higher interest rates. That sounds good on paper since it helps expand Lloyds’ profit margins. But it also simultaneously reduces demand for new borrowing, especially mortgages.

Does Vodafone have the edge?

Looking across the table to Vodafone, the telecoms firm’s turnaround progress is starting to feel real. In its latest full-year results, group organic service revenue grew 5.4%, underlying earnings rose 4.5%, and the business returned a whopping €3.1bn to shareholders in its 2026 fiscal year (ending in March).

Perhaps most importantly, Germany – its biggest and most troubled market – has finally returned to growth after years of decline. As CEO Margherita Della Valle put it: “Vodafone has built broad-based momentum.” The Three UK integration is also running ahead of schedule, which should unlock material cost synergies and help drive UK free cash flow higher.

The bear case however, centres on one number: €52.6bn in debts & equivalents.

Even with free cash flow improving and non-core asset disposals, deleveraging a balance sheet that size will take years. And with the Three UK integration still in its early stages, any execution stumble could delay the very cash generation needed to bring that number down.

So which reaches £2 first?

In my opinion, out of the two, Vodafone looks the more interesting race to watch. Its geographic diversification, accelerating revenue growth, and structural improvements give it more levers to pull. If the debt burden continues to shrink and Germany sustains its recovery, the path to £2 looks more credible from here over the coming years.

To be fair, Lloyds is a high-quality bank delivering impressive numbers. But its near-total dependence on the UK economy makes it more vulnerable to the inflationary pressures building right now.

That’s why I’m paying more attention to Vodafone shares and think investors should consider digging a little deeper.

Should you invest £5,000 in Lloyds Banking Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Lloyds Banking Group Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post Which will reach £2 first, Lloyds or Vodafone shares? appeared first on The Twelfth Magpie.

Right now, Vodafone (LSE:VOD), BT Group (LSE:BT.A) and Kingfisher (LSE:KGF) all trade under £3. And while all three are up over the last 12 months, several professional analysts still see them as potential value stocks to buy in June.

So should I be considering these stocks for my portfolio today?

Is Vodafone finally turning a corner?

Many investors still see Vodafone as a slow, heavily-indebted and complicated telecoms group. That’s exactly why the valuation’s low despite showing promising signs of genuine improvement.

Banking advisory service Berenberg recently upgraded Vodafone from Hold to Buy and hiked its price target from 82p to 123p, arguing that the group can deliver sustainable free cash flow and dividend growth over the next four years.

The team at Barclays has also upgraded its outlook, increasing its own share price target from 100p to 120p, pointing to better growth prospects in Germany and the UK, plus the potential benefits of its merger with Three UK.

Across most forecasts, the bull case is that simplification, cost cuts and more focused capital spending could finally unlock the kind of steady cash generation investors have waited years for.

But it’s important to remember that Vodafone has disappointed before. Integration risk around Three, regulatory pressure on pricing, and still‑intense competition mean any setback could quickly erase the value gap that analysts see.

What about BT and Kingfisher?

BT Group remains another controversial telecoms play. JP Morgan recently lifted its price target to 310p, saying it believes the company is “past peak pain” on alternative network competition and that Openreach line losses should now steadily improve.

The analysts at Berenberg have gone even further, raising their target from 250p to 300p, arguing that deregulation of fibre pricing could be a big long‑term upside driver that the market’s current underappreciating.

Similar to Vodafone, this positive outlook hinges on BT executing on its cost-cutting initiatives while also finishing its fibre buildout without blowing the budget. Yet even if it becomes a cash-generative infrastructure business, high debt and large pension obligations nonetheless remain a persistent risk factor to consider.

On the other hand, Kingfisher, which owns the B&Q and Screwfix brands, looks like the most traditional retail value stock of the three.

Analyst opinion here is very mixed. Barclays, Jefferies, and Berenberg have all issued a Hold recommendation but have placed share price targets at around 300p – above where Kingfisher shares trade today.

Clearly, the pros aren’t entirely convinced of the potential value opportunity here, particularly with the current sluggish state of the DIY market. But the brands nevertheless remain strong with self-help initiatives already underway to boost margins.

Which value stock looks most promising?

All things considered, BT Group seems to be offering the most interesting potential. Capital expenditures have already peaked, it remains a critical national infrastructure asset, and management has already begun delivering visible cost savings.

That’s not to say it’s a guaranteed winner – far from it. But it’s definitely a business worth investigating further for a potential bargain hiding in plain sight. That’s why I’ve already added it to my watchlist.

Should you invest £5,000 in Bt Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bt Group Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post 3 value stocks under £3 to consider in June appeared first on The Twelfth Magpie.

But that may have also just created a fantastic opportunity for shrewd investors…

History shows that sold-off stocks can often become fantastic buying opportunities if and when recovery rallies get underway. And right now, Vodafone (LSE:VOD) and Diageo (LSE:DGE) both look like names that may have already started that process.

Vodafone’s reset story

Vodafone’s one of the UK’s best-known telecoms groups and likely needs no introduction. But the last few years have been pretty brutal.

Weak growth in key European markets, a heavy debt burden, and a long period of strategic drift have dragged the shares lower and left investors deeply frustrated. At least, that was until Margherita Della Valle moved into the corner office.

While it took a while to get the ball rolling, she has successfully begun reshaping the business through asset sales, portfolio simplification, and tighter capital discipline. And with the group’s renewed focus on cash generation starting to translate into superior financial results, Vodafone shares are finally starting to climb again.

In fact, the stock’s already up over 55% in the last 12 months.

There’s still a long way to go before Vodafone can return to its peak valuation years of the early 2010s, and it’s difficult to know whether the company can maintain its current momentum, or if this is just a temporary boost.

Don’t forget, telecommunications is a fiercely competitive and unforgiving sector. And Vodafone still has plenty of execution risk ahead. But nevertheless, it’s hard not to notice the progress made under Della Valle’s leadership. And it’s a recovery story that might be worth considering.

Diageo’s untapped potential

Diageo’s had a very different problem from Vodafone. The drinks giant’s still a world-class enterprise. But its shares have nonetheless been hammered by slowing sales, weaker consumer demand, and inventory destocking headwinds across its key markets.

That slump’s been painful, especially after years of being viewed as a premium compounder. But there are signs that the pressure’s beginning to ease.

Under the new leadership of Dave Lewis, management’s been taking costs out of the business, adjusting inventory levels, and leaning on the strength of its leading spirits brands to stabilise the outlook.

The bull case is that with Diageo shares priced so cheaply, the company likely doesn’t need heroic growth to kick off a recovery rally.

The group’s recent better-than-expected May trading update has already helped Diageo shares start to bounce back after a painful dividend cut announcement in February. And while turnaround efforts are definitely more early-stage compared to Vodafone, that also opens the door to potentially stronger long-term returns.

Of course, just like Vodafone, none of this is guaranteed with good execution alongside wider market forces ultimately being the primary deciding factors of whether or not Diageo shares are indeed a buying opportunity today or a value trap.

Personally, I’m cautiously optimistic for both UK shares, with Diageo showing the most recovery potential. I’ll research them further but these aren’t the only opportunities on my radar this week.

Should you invest £5,000 in Diageo Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post 2 beaten-down UK shares to buy in an ISA before they recover? appeared first on The Twelfth Magpie.

Years of restructuring, asset sales and debt reduction have left it leaner, more focused and better positioned for cash‑flow growth.

Yet the market continues to price it as if the old, sprawling version still exists, creating what looks a compelling undervaluation opportunity.

So where should the stock be priced?

What are the underlying growth drivers?

Share price gains for any stock are ultimately powered by sustained profit growth over time. A risk here for Vodafone is ongoing competitive pressure in key European markets. That could cap its pricing power and slow any recovery in service‑revenue growth.

Another is any higher‑than‑expected network investment requirements — particularly around 5G rollout and fibre upgrades. These could squeeze free cash flow and delay the full force of the profits rebound.

However, analysts forecast that its profits will increase by a whopping average of 43% a year to end-2029 at minimum. In its 2026 results released on 12 May, the firm said: “We are entering a new chapter as a simpler and stronger business”.

Management added that the firm will be more focused on Germany, Great Britain and Africa. It expects this streamlined structure to support stronger growth after full‑year earnings landed at the top end of guidance.

This turnaround is echoed in the firm’s operating profit, which swung from a €0.4bn loss in 2025 to a €2.8bn gain in 2026.

What’s its real value?

Savvy long-term investors are ultimately buying a stream of future cash flows, not 12‑month mood swings. This is why discounted cash flow (DCF) modelling is far more useful here than short‑horizon forward relative valuations or analyst targets (which also focus on 12 months ahead only).

DCF analysis projects a company’s ability to generate cash over many years. It then values those flows in today’s terms to ascertain the stock’s ‘fair value’ now. This anchors the share price to underlying economic reality rather than near‑term market sentiment.

Different analysts DCF modelling outcomes may vary if they rely on different assumptions. Based on my own framework — including a 7.4% discount rate — Vodafone is 66% undervalued at its present £1.12 price.

That implies a fair value of £3.29 — nearly three times the current price. So if asset prices (including shares) continue their historical trend of converging to fair value, this could be an excellent buying opportunity if those DCF assumptions hold good.

My investment view

I already hold shares in BT, so I do not want to distort the risk/reward balance of my portfolio by adding another telecoms stock.

But if I did have scope for that, I would be buying Vodafone now. It has exceptional profit growth projections, and this should support share price gains over time so I feel it is worth considering .

Meanwhile, I have my eye on other shares that are also deeply underpriced, and which offer high dividends too.

Simon Watkins owns shares in BT.

The post How high could Vodafone’s near-£1 share price go after its landmark 2026 results? appeared first on The Twelfth Magpie.

For a stock that spent the better part of a decade in steady decline, that kind of move demands attention. So could Vodafone be gearing up for a Rolls-Royce-style multi-year recovery? Or has the rebound already run out of road?

What’s driving the rebound and can it continue?

The turnaround’s been driven by a genuine shift in the business. Under CEO Margherita Della Valle, Vodafone’s been executing a sweeping restructure, selling non-core assets, cutting costs aggressively, and sharpening its focus on higher-return markets.

The completion of its merger with Three UK has also materially strengthened its domestic competitive position. And analysts are taking note.

Berenberg recently reiterated its Buy recommendation with a price target of 123p, while analysts at Deutsche Bank think the telecoms stock could climb to as high as 155p by this time next year.

Both are citing the credibility of the turnaround and Vodafone’s improving free cash flow trajectory. And with the Three UK merger integration seemingly quite smooth and a leaner cost base emerging, the argument for continued momentum’s real.

What’s on the horizon?

Are there still reasons to be cautious? Yes. And they are worth taking seriously. While the company has started making progress on the deleveraging front, Vodafone’s balance sheet remains heavily indebted.

Selling off non-core assets has helped raised some initial capital quickly to get things under better control. But bringing down gearing further will depend on continued solid operational execution in markets where competition’s fierce.

For example, Germany has historically been the group’s most profitable market. But in recent years, it’s faced mounting pressure from cable competitors eating into broadband and TV revenues. And while there are green shoots emerging, there’s still a long road ahead with no guarantee of success.

In fact, this is one of the reasons why the team of analysts at JP Morgan have issued a Sell recommendation with a 85p price target – around 23.4% lower than where Vodafone shares are trading today.

Where does that leave investors today?

The Rolls-Royce comparison’s tempting, but it pays to be honest. Vodafone’s recovery is earlier-stage, operating in a far more commoditised industry and against a more complex competitive backdrop.

That said, the momentum’s real, the direction’s right, and for patient investors willing to back the turnaround, there’s a compelling argument that Vodafone shares still have meaningful ground to recover at today’s valuation.

All things considered, I think the story’s far from over. And it’s a stock investors should be watching closely.

Zaven Boyrazian has no position in any of the shares mentioned.

The post Up 60.4% in 12 months, are Vodafone shares about to be the next Rolls-Royce? appeared first on The Twelfth Magpie.

Volatile Vodafone

Way back in December 2013, Vodafone shares were trading close to £3. But that marked a distant high for this popular and widely held stock, which then set off on multi-year declines.

On 9 April 2025, the Vodafone share price hit a low of 62.4p, down around 80% from its 2013 high. Repeatedly during last year, I argued that this FTSE 100 firm was undervalued, unloved, and due a valuation re-rating.

For the record, my family portfolio owns shares in Vodafone. We paid 90.2p a share for our stake in December 2022, only to watch as the price kept finding lower lows.

However, over the past year, someone lit a match under this Footsie stock, sending it soaring like a rocket. As I write on Tuesday afternoon (5 May), the share price stands at 115.85p. This values the group at £26.7bn — close to twice its April 2025 lows.

What revived this stock?

Over one year, the Vodafone share price has surged by 58.8%. That said, the shares are down 18.3% over five years — a hint of the pain suffered by long-standing shareholders. (Both figures exclude cash dividends, which have been very generous from this stock.)

For me, much of the recovery in the group’s recent fortunes can be attributed to Margherita Della Valle, who took over as permanent CEO in April 2023. Her turnaround strategy focused on selling non-core assets to raise cash. Vodafone has used these proceeds to invest in core markets, as well as buying back its own cheap shares.

Della Valle also grasped the nettle by tackling the group’s sky-high dividend yield (which reached double digits at times). In May 2024, Vodafone halved its yearly cash payout from 9 euro cents to 4.5 euro cents from 2025 onwards.

Following this extensive restructuring, in November 2025, Vodafone announced its first dividend increase in eight years — a modest 2.5% from the previously rebased level.

Big deal!

Vodafone unveiled its latest corporate move on Tuesday. The group is to pay £4.3bn to buy partner CK Hutchison’s 49% stake in their VodafoneThree joint venture. The Hong Kong-based conglomerate is raising huge sums from asset disposals in 2025/26.

This would leave Vodafone in full control of VodafoneThree, making it top dog of the UK’s three mobile-network operators. The transaction values this business at nearly £13.9bn — more than half of Vodafone’s current market capitalisation. The deal is set to be completed in the second half of this year.

It’s good to see Vodafone’s ship finally settling after years of sailing rough seas. I’m hopeful that this latest deal will prove positive for shareholders. If I’m right, then the share price could shoot past the 120.95p high hit on 18 February, before the US-Iran war sent stock markets tumbling.

For now, I’m happy to sit back and keep hold of our Vodafone stock, banking the near-3.4% yearly dividend yield while we wait. Plus there’s under a week before the half-year results on 12 May!

The post Will this huge deal harm the Vodafone share price? appeared first on The Twelfth Magpie.