UPDATE: Bernstein Research Reiterates on Vodafone on Possible Merger with AT&T
In a report published Wednesday, Bernstein Research analyst Robin Bienenstock reiterated a Market Perform rating on Vodafone (NASDAQ: VOD), and raised the price target from $35.50 to $40.00.
In the report, Bernstein Research noted, “Operationally and strategically, both AT&T and Vodafone are experiencing a rough patch. The possible mega merger between the two that could be a welcome distraction for both appears to have the same sort of momentum as the VZ/Vod did at the time. AT&T's wireline business has recently shown some signs of recovery and longer term there is reason to think that AT&T will remain hegemonic in US telecommunications. But after long years of a high price umbrella and the super-profits that come with a near duopoly of the US wireless market, landlocked AT&T is vulnerable to increasingly credible price competition. Vodafone, on the other hand, faces a narrowing set of strategic options as fixed-wireless convergence and regulatory change transform European competition to Vodafone's disadvantage. There is a turnaround story dying to get out of Vodafone, but its near term challenges and the investment, reorganisation and executive work required to unleash that story should not be underestimated.”
Vodafone closed on Tuesday at $36.81.
Latest Ratings for VOD
|Feb 2015||Bank of America||Downgrades||Neutral||Underperform|
|Oct 2014||Deutsche Bank||Initiates Coverage on||Buy|
|Aug 2014||Bank of America||Reinstates||Neutral|
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