European telecoms sector poised for M&A deals in 2026, JPM says
28/11/2025 09:57
** J.P.Morgan says 2026 should be a year when deals in the European telecoms sector finally arrive ** "Whilst 2025 delivered mounting M&A speculation, 2026 should deliver actual deals," the broker says as it sees likely "4-to-3" player deals in France, Germany, Italy, Spain, and the Nordics ** "Should consolidation be permitted, it is feasible the sector could enjoy a major re-rating," JPM predicts as telco's slowly return to growth after two decades of structural decline ** The brokerage notes satellite operators have been the best performers as defence spending ramps up whilst names such as Deutsche Telekom DTEGn.DE, Telefonica TEF.MC, and mobile phone tower operators drag down the sector average gain of 14% ** Despite revenue trends looking lacklustre through 2026, JPM analysts project a 14% EPS growth for the sector in the coming year, helped by cost cuts and lower capital spending ** Its top picks for 2026 are Orange ORAN.PA, Bouygues BOUY.PA, SES SESFg.LU, BT BT.L, Tele2 TEL2b.ST, Telia TELIA.ST, Sinch SINCH.ST, and Deutsche Telekom
| COMPANY | RATING | OLD RATING | PT | OLD PT |
| Proximus PROX.BR | Overweight | Neutral | EUR 10.9 | EUR 7.8 |
| Telia TELIA.ST | Overweight | Neutral | SEK 46.0 | SEK 40.0 |
| Telenor TEL.OL | Neutral | Overweight | NOK170.0 | NOK 185.0 |
| KPN KPN.AS | Neutral | Overweight | EUR 4.6 | EUR 5.0 |
| Eutelsat ETL.PA | Neutral | Underweight | EUR 1.9 | EUR 2.8 |
| Sunrise SUNN.S | Underweight | Neutral | CHF 37.0 | CHF 46.0 |
| SES SESFg.LU | Overweight | n.a. | EUR 10 | n.a. |