Berenberg ups Telenor to 'buy' with three catalysts to drive stock

freenet AG

25/09/2023 10:56

** Berenberg upgrades Norwegian telecoms operator Telenor
 TEL.OL  to "buy" from "hold", pointing to three catalysts that
can help the shares trade about 20% higher to NOK 140 per share
    ** The broker says a sharp fall in energy spot rates in Q3
support its above-consensus estimate for 6.5% YoY growth in
Telenor's H2 Nordic EBITDA
    ** It sees valuation support for Telenor from its Nordic
tower portfolio and its listed subsidiary in Thailand, True
Corp, from a CMD scheduled for Tuesday
    ** The broker adds the risks to free cash flow over
2023-2025 seem to be now reflected in consensus estimates
    ** However, it won't put Telenor in the same basket as its
preferred "whatever weather winners", including Deutsche Telekom
 DTEGn.DE , INWIT  INWT.MI  and freenet  FNTGn.DE 
    ** One Telenor share was worth NOK 124 at Monday's open
    ** Out of 20 analysts that cover the Telenor stock, nine
rate it "strong buy" or "buy", eight "hold", and three "sell"

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