Citi sees turnaround for Nordic telcos in 2024

Elisa Oyj

18/01/2024 13:19

** Citigroup sees improved EBITDA growth and a reduced FCF
risk for Nordic telecom companies in 2024 following last year's
mixed performance
    ** Price increases bolstered revenue growth for Nordic
telecoms by about 2-3% in 2023, and the broker says it expects
"benign market conditions" to continue to support top-line
growth
    ** It expects Telenor  TEL.OL  to post the fastest
EBITDA/operational FCF growth among Nordic players, raising its
rating for the company to "buy" from "hold" and TP to NOK 145
from NOK 121
    ** It highlights Telenor and Tele2  TEL2b  ("buy") for their
attractive dividend yields and scope for in-market consolidation
    ** Citi keeps "neutral" on Telia  TELIA.ST , expecting no
material improvement in 2024 FCF as higher interest costs are
likely to offset contribution from EBITDA growth
    ** It maintains "sell" for Elisa  ELISA.HE  on market
competition and pressures on IDS and IT services, adding it
finds the Finnish group's dividend yield unappealing compared to
peers 

 (Reporting by Tilla Sjaavaag)
 ((tilla.sjaavaag@thomsonreuters.com))