JPM sees some risks to European telecoms growth in 2025

Elisa Oyj

28/11/2024 09:33

** J.P.Morgan expects European telecoms to post further growth in earnings in 2025, but with some risks
    ** The broker notes increasing revenues and profitability, and says the sector is past peak capital spending
    ** However, it notes "mixed" Q3 results and warns that heightened promotional activities and high interest rates could affect profitability, forcing financial discipline
    ** JPM downgrades Elisa  ELISA.HE  to "neutral" from "overweight", as it expects the Finnish group to face prolonged soft underlying growth in 2025 while the market remains competitive
** It cuts France's Bouygues  BOUY.PA  to "neutral" from "overweight" citing the La Poste acquisition and its delayed profitability
** JPM also lowers Proximus  PROX.BR  to "neutral" from "overweight", saying it is difficult to estimate the potential value creation from the Fibreklaar deal
 COMPANY      RATING       OLD RATING   PT           OLD PT
 Bouygues     neutral      overweight   EUR 37.0     EUR 44.5
 Proximus     neutral      overweight   EUR 8.6      EUR 13.0
 Elisa        neutral      overweight   EUR 50.0     EUR 55.0
 Telia        neutral      -            SEK 33.0     SEK 31.0
 Tele2        neutral      -            SEK 114.0    SEK 104.0
 Eutelsat     underweight  -            EUR 2.8      EUR 3.0
 
(Reporting by Vera Dvorakova)
((mailto:vera.dvorakova@thomsonreuters.com))