Vontobel reinitiates Sunrise Communications at 'buy' on dividend prospects
17/01/2025 08:05
** Vontobel reinitiates Switzeland's Sunrise Communications
SUNN.S with a "buy" rating, citing its attractive dividend
policy
** "Not the typical low-risk telco investment but
compensated with attractive dividend," Vontobel analysts write
** They set a PT of 51 Swiss francs per share, vs 45.91
francs at Thursday's close
** "Due to the continued shift to secondary mobile brands
and expected pricing pressure in broadband due to the fiber
rollout, we assume stable revenues but slight EBITDA growth
(avg. 1% 2024E-26E)," they write
** Vontobel says Sunrise's balance sheet is "highly
leveraged" and expects it to continue deleveraging slowly on the
back of improving post-integration FCF and the promise of an
attractive dividend policy
** Sunrise's shares rise 1.1% in early trading
($1 = 0.9126 Swiss francs)
(Reporting by Marleen Kaesebier)
((Marleen.kaesebier@thomsonreuters.com))