New Street Research - Vodafone Group (VOD LN) Vodafone (Buy, 135p, +81%): Hutchison deal - good, but could have been better

Report

New Street Research

Ben Rickett ...

James Ratzer

EUR 8536.00 For Business Accounts Only

Vodafone (Buy, 135p, +81%): Hutchison deal - good, but could have been better

After a considerable wait, Vodafone has finally announced its much expected merger with Hutchison UK.

We view this as a much-needed value-accretive deal for Vodafone of c.8p/ share, but potentially not as value accretive as it could have been. The CMA approval though is now the vital step needed in order to approve the deal.

15/06/2023 1 EN

Underlying

Vodafone Group

See profile

Provider

New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
Global healthcare thematic research

We provide debt research on:

Pan European Telecom Services and Cable

See profile

Analysts

Ben Rickett

James Ratzer

Other Reports on these Companies

New Street Research

Vodafone to Virgin spectrum sale: More details revealed

As part of the Vodafone-Three merger (VOD3UK), the merging companies committed to sell a portfolio of spectrum to VMO2. The details of that spectrum portfolio have now been formally disclosed by Ofcom, which has published a notification listing the frequencies that are due to be transferred (LINK). In this note, we run through the final decisions and implications for potential UK revenue share.

EUR 8536.00

June 19, 2025 June 19, 2025 1 EN

New Street Research

The company started seeing signs of recovery as subscriber losses begun to narrow and margins continue to improve. However, revenue and EBITDA still trailed expectations by 2% and 1% respectively.

As we expected, the UK merger completed this morning, so we wanted to take this opportunity to highlight the note we put out on Saturday, in which we published our new model (including the UK merger, and assuming Vodafone buys out the Hutchinson minority in 3 years’ time). The terms of the deal are as initially announced. We believe the value creation is +9p per share, included within our 120p price target. We still see >50% upside from current levels.

EUR 8536.00

June 2, 2025 June 2, 2025 1 EN

New Street Research

Vodafone (Buy, 120p, +56%) Was 135p Target price/ model update: The UK ups and the German downs

We don't usually aim to publish price target updates over the weekend, so please do forgive us, but with today being May 31st and Vodafone's desire to close the UK merger during H1 and at a month-end, we would like to think that the UK deal closing could be very imminent - and maybe even today.

EUR 8536.00

May 31, 2025 May 31, 2025 1 EN

Thai Telcos Auction concludes, no major surprises

Thailand concluded its spectrum auction on Sunday and raised THB 41.3bn (US$ 1.26bn). Overall process was benign and results were as expected – AIS retained its 2100MHz share whilst TRUE won the 2300MHz and 1500MHz band; only the 850MHz was left unsold. Our brief thoughts below.

EUR 8536.00

3h / 25m 3h / 25m 1 EN

Jin Yoon

Jin Yoon

VIPS 2Q25 Preview: Lowering 2Q Topline Estimates

What’s New: We lower our 2Q25 top line estimates towards the lower end of the guided range as sales momentum in apparel slowed down in the month of Jun due to prolonged promotion event. Analysts: Jin Yoon

4h / 55m 4h / 55m 1 EN

Pierre FerraguÊ

Pierre FerraguÊ

Microsoft vs. OpenAI: Implications for investors?

Press reports about ongoing negotiations between Microsoft and OpenAI have intensified in recent weeks. How much does that matter for investors in Microsoft? In this note, we lay out our understanding of the current agreement, outline what is publicly reported about ongoing negotiations, and we provide our perspective on the situation.

June 28, 2025 June 28, 2025 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Vodafone (Buy, 135p, +81%): Hutchison deal - good, but could have been better

Vodafone to Virgin spectrum sale: More details revealed

The company started seeing signs of recovery as subscriber losses begun to narrow and margins continue to improve. However, revenue and EBITDA still trailed expectations by 2% and 1% respectively.

Vodafone (Buy, 120p, +56%) Was 135p Target price/ model update: The UK ups and the German downs

Thai Telcos Auction concludes, no major surprises

VIPS 2Q25 Preview: Lowering 2Q Topline Estimates

Microsoft vs. OpenAI: Implications for investors?

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe