NewStreet downgrades Swiss telecoms on poor market prospects

Sunrise Communications

25/02/2026 13:59

** NewStreet Research downgrades Swiss telecommunications providers Swisscom SCMN.S and Sunrise SUNN.S to "reduce" from "neutral", stating their valuations are not justified due to a poor outlook for the Swiss market

** The broker says both stocks have been augmented due to the Swiss safe-haven status and because they are seen as a hedge against a potential AI bust

** However, NewStreet projects that the Swiss telecommunications markets will continue to underperform European equivalents

** The analyst points to a spin-down risk to cheaper sub-brands for Swisscom

** For Sunrise, NewStreet points to potential network upgrade costs and mixed results

** NewStreet says competitor Salt Mobile AG offers better value to consumers for the same price than both Swisscom and Sunrise

** Shares of Swisscom and Sunrise are among the bottom movers of the Swiss large-cap .SSMIi and mid-cap .SMIMi indices, and are up 23.3% and 11.5% year-to-date, respectively

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))