MS cuts Swisscom after rally, flags dividend sustainability risks

Swisscom AG

11/06/2026 09:24

** Morgan Stanley cuts Swisscom SCMN.S to "underweight" from "overweight", citing challenges in its key markets and saying valuation implies overly optimistic dividend growth
** "We calculate the current valuation implies >3% dividend growth into perpetuity, above the outlook for FCF growth and therefore unsustainable," MS says
** "We now see much priced into the name despite challenges in both Swiss and Italian markets," it adds
** Swisscom shares are up 12% year-to-date
** The broker cuts its price target to 600 Swiss francs ($751.22) from 720 Swiss francs
**​ It prefers European peers Deutsche Telekom DTEGn.DE, BT Group BT.L and NOS SGPS NOS.LS
     
($1 = 0.7987 Swiss francs)

 (Reporting by Danny Callaghan)
 ((danny.callaghan@thomsonreuters.com))