UBS cuts Cellnex to 'neutral' on merger, contract concerns lingering until 2028

Cellnex Telecom S.a

19/08/2026 13:13

** UBS downgrades Spanish telecom company Cellnex CLNX.MC to "neutral" from "buy" on uncertainty over telecom mergers, ongoing contract disputes, future competition from satellite services and rising borrowing costs
** It cuts target price to €29.5 from €43.5
** The broker says Cellnex can prove to be undervalued, but any re-rating is unlikely before 2028, when it expects answers on French telecom consolidation about how regulators will treat tower assets in future telecom mergers
** UBS sees also little chance of a breakthrough before 2028 in negotiations over tower contracts in Italy
** Investors are increasingly comparing Cellnex with telecom operators that offer lower growth but more predictable returns and higher cash payouts, UBS adds

 (Reporting by Gemma Guasch in Gdansk)
 ((Gemma.guasch@thomsonreuters.com))