JPM sees record M&A for European telecoms in 2022

Telefonica Deutschland Holding AG

01/12/2021 07:46

** JP Morgan keeps its positive view on European telecoms
going into 2022, citing return to revenue growth, sector
consolidation and favourable regulation
    ** JPM says it expects 2022 to deliver record levels of
sector M&A and key plays on this include BT, KPN, Cellnex,
Vodafone, INWIT  INWT.MI  and Vantage Towers  VTWRn.DE 
    ** The broker also expects favourable regulatory change to
continue
    ** "For the first time in a decade, we now expect the
majority of Telcos to offer positive revenue growth, " JPM says
    ** Its top picks for 2022 include BT  BT.L , Cellnex
 CLNX.MC , KPN  KPN.AS , Truecaller  TRUEb.ST , Vodafone
 VOD.L , Deutsche Telekom  DTEGn.DE  and Telefonica Deutschland
 O2Dn.DE , while it is short on Telia  TELIA.ST  and Telefonica
 TEF.MC 
    ** It upgrades Proximus  PROX.BR  to "neutral" from
"underweight" , citing increasing clarity around the forward
looking market structure and earnings/capex outlook 
    ** It cuts, however, NOS  NOS.LS  from "overweight" to
"neutral" as it sees a tougher longer term competitive
environment in the Portuguese market

 (Reporting by Anait Miridzhanian)
 ((anait.miridzhanian@thomsonreuters.com))