- Vodafone (NASDAQ:VOD) is 1.1% lower as Goldman Sachs removes it from its Pan-Europe Buy List, downgrading the stock to Neutral from Buy.
- The firm has a price target of 250 pence, down from 275 pence; shares are trading down 1% in London at 235.55 pence.
- Amid recent talk about an asset swap with Liberty Global (LBTYA +0.5%), Goldman's Tim Boddy sees the risk/reward profile as "more binary" with Vodafone still set to benefit from "'double' consolidation of both mobile and fixed-mobile operators ... We see attractive operational gearing to this growth recovery given its low margins."
- M&A is still a very valid option and if management reconsiders its structure, "we believe a number of other potential acquirers could take interest in its remaining assets," he says.