Shares of Vodafone Idea Ltd. declined as much as 14% on Friday, reaching an intraday low of ₹12.92 from the previous day’s close of ₹15.06. This sharp decline was seen after global brokerage firm Goldman Sachs recommended a ‘Sell’ rating on telecom service provider Vodafone Idea Ltd.

The brokerage has a price target of ₹2.5 per share on the stock. The recent price target implies a potential downside of over 80% from the stock’s last closing level on Thursday.

However, this is not the lowest price target on the street for Vodafone Idea. Deutsche Bank has a price target of ₹1.5 per share on the counter.

They believe the recent capital raise is unlikely to be adequate to stop the company’s market share erosion.

The foreign brokerage projects an additional 300 basis points decline in market share over the next 3-4 years. Additionally, the company has significant adjusted gross revenue (AGR) and spectrum-related payments, which are expected to begin in FY26.

To achieve sustainable free cash flow neutrality, average revenue per user (ARPU) would need to increase by ₹200-270, compared to December 2024 levels.

Goldman Sachs anticipates that free cash flow will remain negative at least until FY31.

On the flip side, Citi has maintained a ‘buy’ rating on Vodafone Idea, with a price target of ₹22 per share.

The brokerage had pinned its hopes on the Supreme Court agreeing to hear Vodafone Idea’s AGR Curative petition, adding that any favourable outcome could significantly reduce its AGR debt burden.

Citi had cited potential benefits worth ₹4 to ₹5 per share or even higher, or more than 25% benefit on its current market price.

“We view this as a material development as the matter has been long pending and it has been uncertain whether the Supreme Court would be willing to hear Vodafone Idea’s petition,” the brokerage noted.

Citi’s current base case price target of ₹22 per share does not factor in any reduction in the company’s AGR dues.

Currently, Vodafone Idea owns nearly ₹70,000 crore in AGR dues.

Citi had termed Vodafone Idea a “high risk, high returns” stock.

Out of the 22 analysts that track Vodafone Idea, 13 of them have a ‘Sell’ recommendation on the stock, five of them have a ‘Hold’ rating, while four have a ‘Buy’ recommendation.

Shares of Vodafone Idea are down 10% on Friday at ₹13.65.