MS cuts Elisa to 'equal-weight' on 'worse than expected' mobile competition

Elisa Oyj

27/11/2025 13:30

** Morgan Stanley downgrades Finnish telecommunications firm Elisa ELI1V.HE to "equal-weight" from "overweight", citing a prolonged period of intense mobile market competition that is "worse than expected"

** The broker notes competitor Telia's TELIA.ST aggressive response to market share losses has put Elisa "in the cross-fire", resulting in significantly higher customer churn, +22.3% in Q3

** MS expects this pressure to continue, with new low-cost operators entering the market and a tough economic climate in Finland dampening revenue growth prospects

** The brokerage views the new management's mid-term growth target of over 4% as "ambitious", forecasting a more conservative 2-3% growth for the company

** As a result, MS cuts its 2025-2027 earnings forecasts by up to 7% and lowers its price target by 26% to EUR 43

** Out of 20 analysts that cover the Elisa, seven rate it "strong buy" or "buy", ten rate "hold", and three rate "sell" or "strong sell", according to LSEG data

 (Reporting by Marta Frackowiak)

 ((marta.frackowiak@thomsonreuters.com))