Telecoms: Exane sees earnings upgrades key in 2021, improved scope for monetisation

DT Capital

18/03/2021 09:49

** Exane BNP Paribas anticipates positive changes in the
near-term consumer attitudes towards telecoms, seeing scope for
monetisation and sector revenues rebounding to growth in 2021
    ** It says, however, that the change is not universal, e.g.
Italian and German clients are willing to pay for faster
broadband while price sensitivity is increasing in Spain 
    ** The brokerage also warns that its operating free cash
flow estimates are about 5% below consensus in 2022 as
medium-term numbers still appear too high 
    ** Iliad  ILD.PA  will lead the pack of Exane's highest
quality telecoms as the world reopens in 2021, it says and adds
that pricing power and market structure will play a more
important role than ever
    ** Exane raises Telecom Italia  TLIT.MI  and 1&1 Drillisch
 DRIG.DE  to "neutral" from "underperform" and Euskaltel
 EKTL.MC  to "outperform" from "underperform"
    ** The brokerage cuts Telenor  TEL.OL  and Telefonica
Deutschland to "neutral" from "outperform"

    

 ((diana.mandiaalvarez@thomsonreuters.com))