JPM upgrades Tele2, sees scope for multi-year price rises

Tele2 AB

21/03/2025 10:56

** J.P.Morgan upgrades Tele2 TEL2b.ST to "overweight" from "neutral" and raises its PT by 37% to SEK 156, seeing scope for multi-year price rises for the Swedish telecom operator

** Tele2 has significant runway for multi-year price rises which could drive consensus service revenue estimates higher in the medium term, the broker says

** It expects the company's Deep Transformation Plan, announced in January, to deliver SEK 500 million ($49.5 million) in cost savings, in addition to its Strategy Execution Plan

** Both revenue and cost elements imply over 7% EBITDAaL growth over 2025 and 2026, it adds

** JPM expects Tele2 to deliver three-year EBITDA compound annual growth rate of 5.8%, ahead of Nordic peers' average of 3.2% and the broader telecom sector's 2.2%

** The brokerage adds current trading multiples look attractive for Tele2's medium-term growth prospects

** Out of 22 analysts covering Tele2, 11 rate the stock "strong buy" or "buy", ten "hold" and one "sell"

($1 = 10.0984 Swedish crowns)

(Reporting by Marta Frąckowiak)

((marta.frackowiak@thomsonreuters.com))