JPM resumes coverage of Swisscom at 'underweight' on competitiveness concerns

Swisscom AG

10/10/2025 07:39

** J.P.Morgan resumes coverage of Swisscom SCMN.S at "underweight" citing concerns over its competitiveness in the Swiss and Italian markets

** The broker sees continued average revenues per user (ARPU) declines in the Swiss market for 2026 as the company's pricing model looks "uncompetitive" compared to other players and low-cost carriers penetration increases

** In a similarly difficult Italian market, the merger of company-controlled Vodafone Italia and Fastweb brings further risks of market share loss as portfolios are aligned at a premium price point, but this "will likely be offset by merger synergies", the broker says

** JPM adds it sees Swisscom's premium valuation as unjustified given that its revenue and EBITDA growth lags the broader sector and competitors deliver lower capex intensity and leverage

** Out of 19 analysts that cover Swisscom, four rate the stock "strong buy" or "buy,"​ eight rate it "hold" and seven​ rate the stock "strong sell" or "sell" - LSEG data

(Reporting by Emanuele Berro)

((emanuele.berro@thomsonreuters.com))