Citi starts Digi Spain at 'buy' on long-term growth potential
BUZZ-Citi starts Digi Spain at 'buy' on long-term growth potential ** Citigroup initiates coverage of Digi Spain DIGIS.MC with a "buy" rating and a €8.3 target price, citing the telecoms provider's visible long-term growth
** The stock debuted in Madrid on July 16 and has increased its value by more than 18% from its IPO price, closing at €6.64 per share on Monday
** The company's focus on core operations and limited outsourcing keeps costs low, enabling competitive pricing and market share gains, the broker says
** Citi estimates annual revenue growth of 14% and EBITDA after operating leases growth of 28% between 2025 and 2028
** However, it does not see operating free cash flow after leases turning positive until 2029 due to Digi Spain's investments in growing its fibre-to-the-home network
(Reporting by Gemma Guasch)