Jefferies downgrades Vodafone ahead of annual results on tough industry conditions

FILE PHOTO: Vodafone logo is seen during GSMA's 2022 Mobile World Congress (MWC) in Barcelona, Spain February 28, 2022. REUTERS/Nacho Doce

(Reuters) - Jefferies on Friday downgraded Vodafone Group Plc for the first time in two years, citing the telecom group's vulnerability in tackling rising inflation and headwinds in Germany, ahead of the company's annual results next week.

The world's second largest mobile operator must be "cautious" while providing outlook as the company is facing intense competition in several key markets amid rising costs, analyst Jerry Dellis said, after downgrading the company to "hold" from "buy".