Telenet: Accumulated risks prompt Citi cut to 'neutral'

Orange Belgium NV

07/09/2021 10:03

** Shares in Belgium-based communications services provider
Telenet Group  TNET.BR  fell 2.5% after a Citigroup downgrade to
"neutral" from "buy" 
    ** Broker says the significant risks brought on by the
possible entrance of a fourth mobile network on the Belgian
market  urn:newsml:reuters.com:*:nL3N2NE3EW could be damaging to all operators, while Q2
should also be more competitive 
    ** Additionally, Telenet is still in the running to acquire
VOO, a Belgian cable operator -- Citi notes the outcome of the
bidding war is critical to the company's strategic development 
    ** In view of said risks, uncertainties and grimmer outlook,
broker rates Telenet, Proximus  PROX.br  and Orange Belgium
 OBEL.BR  - Belgium's three operators- at "neutral" - albeit
after good result runs  
    ** On Telenet, Citi adds "until there is more clarity around
at least the fourth mobile entrant, we find it difficult to see
them outperform their sector peers in 2H21e"
    ** Out of 18 analysts who cover the stock, 15 rate it "buy"
and three rate it "hold" 

    
  

 (Reporting by Lucinda Langlands-Perry)
 ((Lucinda.langlands-perry@thomsonreuters.com))