Oddo BHF Sees Significant Catch-Up Potential for Saint-Gobain

Berenberg announced on Wednesday that it has upgraded its recommendation on Vodafone shares from "hold" to "buy," with a raised price target from 82 to 119 pence, representing an upside potential of around 20%.

In a research note, the financial intermediary justifies its optimism by pointing to improved free cash flow (FCF) prospects for the telecom operator following strong results posted during the current fiscal year. Berenberg is banking both on sustainable growth of this indicator in the years ahead and on a dividend increase.

Furthermore, it argues that Vodafone now boasts a much stronger balance sheet, which should enable the company to allocate capital more efficiently and successfully carry out value-creating transactions.