Barclays cuts Vodafone, Hellenic Telecom on restricted pricing energy (NASDAQ:VOD)

Vodafone sign

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international telecoms in a tricky macroeconomic backdrop, Barclays is reducing its scores on a pair that it says has restricted pricing energy.

Analyst Maurice Patrick has reduce Vodafone (NASDAQ:VOD) and Hellenic Telecom (OTCPK:HLTOY) to Equal Weight, from a earlier Obese ranking.

That is on account of restricted capability to cross alongside price will increase in Italy, Greece, and Spain, he stated, thanks largely to excessive competitors, macro uncertainties or a mixture of these elements.

Inflation will land tougher on Vodafone (VOD) than most telecoms, he stated, with solely the UK more likely to see materials value will increase over the subsequent couple of years amongst Vodafone’s 4 greatest European markets. As for Hellenic Telecom (OTCPK:HLTOY), Greece is extra possible than others to see affect from an financial slowdown.

Turning to France amongst Europe markets, Patrick and staff stated that 4 market gamers is an unstable equilibrium that has “proved rational”; they’ve upgraded Orange (ORAN) to Equal Weight from Underweight. And as for the Nordics, Patrick boosted Telia (OTCPK:TLSNY) to Obese from Equal Weight on account of these international locations’ optimistic value inflation tendencies.

He is reduce his value goal on Vodafone to 140 pence a share, vs. in the present day’s shut of 126.26 pence. And he is reduce Hellenic’s goal to €17 from €19 (vs. in the present day’s €16.20).

Orange will get a goal bump to €10.5 from €9.5 (vs. in the present day’s Paris shut of €11.12), and Telia is boosted to 50 kronor from 45 (vs. Stockholm’s shut of 39.45 kronor).

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