Exane BNP Paribas refreshes preferences on Nordic telecoms

Elisa Oyj

27/03/2024 12:00

** "Out with the old, in with the new" - Exane BNP Paribas
updates views on Nordic Telecoms after its new annual
prioprietary consumer survey STAMP 2024 (Survey of Telecom &
Media Preferences) 
    ** It double upgrades Telenor  TEL.OL  to "outperform"
expecting the company can grow FCF faster than consensus expects
and enough to cover the dividend
    ** The broker sees that Telenor, the best-ranked Nordic
telecom on STAMP, can cut costs in Norway, bringing down capex
and increasing Asian dividends  
    ** "Still a star but shining less brightly", the brokerage
says of Elisa  ELISA.HE , and double downgrades the company to
"underperform" 
    ** It points out that the gap versus Elisa's Finnish peers
has narrowed; the broker still expects the company to grow
faster than European peers, but by a smaller margin and by less
than consensus expects      
    ** The brokerage cuts Tele2  TEL2b.ST  to "neutral", cuts
target price by 1% to SEK 88, citing a deterioration in
fixed-line customer perceptions and that the shares are trading
close to the broker's target price following the Iliad stake
purchase
    ** The broker maintains "neutral" rating on Telia  TELIA.ST 
  

 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))