Barclays downgrades Telenor to 'underweight', cites 'temporary pause' in growth momentum
BUZZ-Barclays downgrades Telenor to 'underweight', cites 'temporary pause' in growth momentum ** Barclays downgrades Norwegian telecommunications operator Telenor TEL.OL to "underweight" as momentum in Norway and Finland is set to ease during the second quarter
** The brokerage expects a "temporary pause" in growth for Nordic telecom companies, pressured by tough comparables in Norway and operational struggles in Finland and Bangladesh
** Barclays adds that the Finnish market has entered a disruptive phase with elevated competition and aggressive promotions pressuring average revenue per user across operators
** The broker cuts its price target for Telenor by 12.5% to NOK 140 from NOK 160, anticipating its EBITDA or core operational profitability to turn negative in the near term
** Barclays also upgrades Swedish peer Telia TELIA.ST to "equal weight" from "underweight", citing steady execution in its domestic market that limits downside risks
** Broker keeps its overall industry view for the broader European telecom services sector unchanged at "neutral"
COMPANY | NEW RATING | OLD RATING | NEW PT | OLD PT |
|---|---|---|---|---|
Telenor | "underweight" | "equal weight" | NOK 140 | NOK 160 |
Telia | "equal weight" | "underweight" | SEK 51 | SEK 37 |
(Reporting by Agnieszka Gosciak-Rabalska)
((Agnieszka.Gosciak@thomsonreuters.com))