Citi Downgrades Vodafone: 'Time For A Pause For Breath'

Citi downgraded Vodafone Group plc VOD to Neutral from Buy, on decent performance, competitive and political risks.

According to the analysts, the stock is up with events after a period of decent performance. They don't expect a major positive catalyst for another two quarters, given the positive May results and the fact that Netherlands JV with Liberty Global likely to take until the end of the year to close.

"Vodafone has so far ridden out the general political risk in Europe, outperforming UK stable-mate BT by 27 percent YTD, but the October constitutional referendum in Italy could challenge this, among other election risks. In Italy we also see potential for greater competitive pressure with Iliad positioning to enter the market via the 3/Wind deal remedies," wrote Citi.

The bank has a £2.45 price target on the stock.