Vodafone Group plc shares: Brokers react to concerns of mounting spectrum costs
Published on Tuesday, 18 December 2012 10:42
Written by Rob Samson
Vodafone Group plc (LON:VOD) shares remain under pressure this morning following yesterday's heavy falls.
VOD plummeted as investors express concern over the cost of radio waves used to transmit calls.
The concerns follow a Dutch spectrum auction that saw Vodafone pay €1.38bn for nine licences; an indication that mobile phone companies will face heavy cost pressures as we advance into a 4G world.
Broker rating updates following VOD share price fall
The most significant broker call issued following yesterday's events concerns analysts at Morgan Stanley who have downgraded their target share price for VOD.
While an Overweight rating was maintained the stocks target was cut to 205. At 10:25 AM in London Vodafone shares are at 157.
Credit Suisse meanwhile retain their Outperform rating but their target price is a sight closer at 170.