Vodafone share price tumbles after Credit Suisse change
It’s not looking good for Vodafone shareholders, shares fell dramatically when Credit Suisse decreased its rating on the wireless operator to “neutral” from “outperform” after concerns about Vodafone’s performance in Spain and through Apple’s iPhone taking customers away from Vodafone.
The target price on the group has been cut from 180p to 160p. The broker said that “We believe Vodafone is likely to slightly miss its new revenue guidance on an underlying basis and could slightly miss lower end of its earnings before interest and taxation guidance on the company’s original currency assumptions,”
The broker also said that “Vodafone Spain could shrink 4% to 5% year-on-year, worse than consensus. iPhone may take 600,000 contract customers away from company in the next 12 months.”
Although the Sterling has weakened, and did improve the shareprice of Vodafone, it’s now been undermined by the performance of Vodafone Spain and the iPhone 3G.