Barclays sees continued M&A momentum for European telecoms in 2025

Tele2 AB

10/12/2024 07:28

** Barclays expects M&A potential in the European telecoms
space to create new opportunities in 2025
    ** "We do see a potentially significant shift in regulatory
and competition policy across Europe, be it a lightening
regulatory burden or less onerous remedies for in-market
consolidation," Barclays says, naming Spain and UK as examples
of this
    ** It prefers Deutsche Telekom  DTEGn.DE  and Telecom Italia
 TLIT.MI  (both "overweight"), citing strong U.S. growth and
favourable trends in Europe for the former and positive exposure
to consolidation for the latter
    ** It downgrades KPN  KPN.AS  and BT  BT.L  to "equal
weight" due to limited M&A upside and falling revenues,
respectively
    ** "Deal approvals now reignite hopes for M&A in other
markets. We believe other markets with four players could now
potentially consider similar deals" - Barclays
    
 COMPANY     RATING        OLD RATING    PT           OLD PT
 BT Group    Equal weight  Overweight    190 pounds   215 pounds
 Deutsche    Overweight    -             39.50 euros  -
 Telekom                                              
 KPN         Equal weight  Overweight    4.20 euros   -
 NOS         Underweight   -             3.60 euros   3.90 euros
 OTE         Overweight    -             20 euros     -
 Orange      Overweight    -             12.50 euros  -
 Proximus    Equal weight  -             7.00 euros   10.50
                                                      euros
 Tele2 AB    Overweight    -             135 euros    -
 Telecom     Overweight    Equal weight  0.32 euros   0.38 euros
 Italia SpA                                           
 Telefonica  Equal weight  -             4.60 euros   5.00 euros
 SA                                                   
 
 (Reporting by Gianluca Lo Nostro in Gdansk)
 ((gianluca.lonostro@thomsonreuters.com;))