Citi lifted its price target on Vodafone Group plc on Monday to 100p from 85p as it put Kenyan telecoms firm Safaricom in its forecasts.
The bank said it believes sentiment remains mixed on Vodafone, and yet it was one of the best performing stocks in the telecoms sector in H2 2025.
"We see scope for sentiment to build further in the coming quarters, as German revenue trends remain positive for now, while UK merger synergy delivery adds a positive string to the investment case," Citi said.
"That said, Vodafone is perceived as a consolidation 'loser', given the risk of newsflow around any potential German consolidation, while we believe that German trends will return to decline once the 1&1 revenue ramp-up annualises."
Citi maintained a 'neutral' rating on the stock.
At 0950 GMT, Vodafone shares were up 0.8% at 101.65p.