FINWIRES · TerminalLIVE
FINWIRES

Research Alert: CFRA Maintains Buy Recommendation On Adss Of Vodafone

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 4-STARS (Buy) recommendation, as we believe Vodafone has emerged in a much better position after portfolio rebalancing, with stabilization in Germany and improved shareholder returns of EUR3.1B in FY 26 (Mar.), with EUR1.1B in dividends and EUR2.0B in buybacks. We keep our target price at USD17, representing FY 27 consensus EV/EBITDA of 5.8x, in line with its large telco peers. We maintain our FY 27 EPS estimate at EUR1.00 and introduce our FY 28 EPS estimate at EUR1.30. In May 2026, Vodafone fully consolidated VodafoneThree in the U.K. by acquiring CK Hutchison's 49% stake for GBP4.3B, which management stated would allow for faster integration and realization of synergies. Management provided upbeat FY 27 guidance of EUR11.9B-EUR12.2B for adjusted EBITDAaL and EUR2.6B-EUR2.9B for adjusted free cash flow. We think that Vodafone will enter FY 27 with improved cash flow prospects and that the company can benefit from potential African divestments to focus on Europe, removing currency risk.

Related Articles

Research

Research Alert: CFRA Maintains Hold Rating On Shares Of Unitedhealth Group

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month price target to $440 from $385, 24x our 2026 EPS estimate (up $0.11 to $18.36; 2027 estimate up $0.64 to $20.76), a premium to UNH's 10-year historical forward average of 19.4x. Our target multiple is above most peers to reflect strong FCF generation, balance sheet strength, scale advantages, and a diversified business model across health insurance, pharmacy benefit management, health care technology and analytics, and outpatient facility networks. We are upgrading our 12-month fundamental outlook for the managed health care sub-industry to neutral from negative, with UNH and peers taking steps to improve profitability via increased medical premiums, strategic portfolio shifts/exits, and heightened focus on cost control within an elevated medical cost landscape. We anticipate that these actions may improve margins and profitability looking ahead to 2027-2028 and think valuations could gradually improve.

$UNH
Research

Research Alert: Cisco Systems Delivers Record Results Fueled By Ai And Networking Refresh

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:CSCO delivered exceptional Q3 FY 26 results with revenue surging 12% Y/Y to a record $15.8B and non-GAAP EPS of $1.06 representing 10% growth, significantly exceeding guidance across all metrics. The standout Networking segment posted 25% Y/Y growth to $8.8B driven by AI infrastructure investments, while product orders accelerated 35% Y/Y with networking orders up over 50%. However, Security remained flat at $2.0B, marking concerning deceleration from recent double-digit growth rates. Management raised AI infrastructure expectations to $9B orders and $4B revenue for FY 26, up from $5B and $3B, respectively, with Q4 guidance of $16.7B-$16.9B revenue and $1.16-$1.18 EPS. We believe CSCO's increasingly prominent role in AI-driven infrastructure transformation provides solid foundation for continued growth, though we note the uneven demand across segments with Security weakness highlighting competitive intensity in cybersecurity markets.

$CSCO
Research

Research Alert: CFRA Maintains Hold Rating On Shares Of Constellation Software Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We trim our target price to CAD2,692 from CAD3,233, based on a P/E of 32x our 2027 EPS estimate, below its three-year average. We raise our 2026 EPS projection to USD57.58 from USD42.76 and increase our 2027 EPS view to USD61.41 from USD60.60. CSU reported Q1 2026 revenue of $3.18B, up 20% Y/Y, driven primarily by acquisitions, with organic growth of 6% (2% FX-adjusted). License revenue declined 9%, while Maintenance and recurring revenue, representing 77% of total revenue, grew 22% with strong 9% organic growth. Operating expenses increased 21%, slightly outpacing revenue growth and resulting in modest margin compression, while newly acquired businesses in Q1 2026 were also notably margin-dilutive, running at negative margins. Management expects margins to improve over time, though this warrants monitoring given its growth by acquisition strategy. Free cash flow available to shareholders rose 44% to $733M, reflecting a 380-bp expansion from Q1 2025.

$CSU