CS assumes coverage of Telefonica Deutschland with 'outperform' on attractive outlook

Telefonica Deutschland Holding AG

21/04/2022 08:39

** Credit Suisse assumes coverage of Telefonica Deutschland
 O2Dn.DE  with "outperform", as it sees attractive growth
outlook and scope for lower capex than consensus expects for the
German telecommunications company
    **  Telefonica Deutschland is the broker's preferred
exposure to the parent group Telefonica  TEF.MC , which is a
complex mix of businesses with solid and more challenged
outlooks, it says
    ** The brokerage says it is bullish due to the company's
improving network position, limited impact from the new German
telecommunications law and limited inflation risk 
    ** Credit Suisse sees the company's guidance for capex to
fall to 13%-14% of sales as "credible" and expects Telefonica
Deutschland's free cash flow to grow
    ** Out of 22 analysts that cover Telefonica Deutschland,
nine rate the stock "strong buy" or "buy"​, ten rate it "hold"
and three​ rate the stock "strong sell" or "sell"
    
    

 (Reporting by Ana Cantero)
 ((ana.canteroros@thomsonreuters.com))