Broker snap: 'Buy' Vodafone shares sooner rather than later, says Prime Wealth

6th Feb 2014 10:06

Prime Wealth Group has labelled telecoms titan Vodafone as a 'buy', recommending investors to snap up shares quickly after the company's third-quarter figures beat forecasts on Thursday.Vodafone reported that revenues for the three months ended December 31st totalled £10.98bn, 3.6% down on last year but ahead of the £10.86bn that analysts were expecting, as ongoing weakness in Europe was offset by a strong performance in emerging markets."The stock fell back ahead of today's results which, while suffering from challenging trading conditions in Europe, delivered better-than-expected numbers. Shares are already recovering in early trade, and look set to regain year highs in the near future," said Dafydd Davies, Senior Trader at Prime Wealth."Once again a window of opportunity has opened, but with an apparent relief rally underway, those considering picking up the stock should do so sooner rather than later."Davies said that while the stock remains above a rising 200-day moving average support level at 210p, there is "sufficient momentum" to drive it to its yearly highs at 235p and above in the coming two weeks.He also said that the stock should head higher as Vodafone's Project Spring plan - the £7bn investment programme to strengthen networks and services - "starts to unleash the latent potential".Meanwhile, the company has a "financial arsenal" after its Verizon Wireless stake disposal "to drive its empire forward", Davies said.The stock was up nearly 3% at 222.25p by 11:22 on Thursday.BC