Citi sees attractive value in Nordic telcos, upgrades Telia to 'buy'

Telia AB

14/01/2026 12:40

** Citi says the Nordic telecoms sector looks attractive, trading at interesting levels and offering dividend yields of 6-7% that are well-covered by cash generation

** Citi expects companies to give confident outlooks for the coming year, which could support share prices

** It upgrades Telia TELIA.ST to "buy" from "neutral", expecting further cost-cutting measures to drive profit and cash flow growth

** The broker names Tele2 TEL2b.ST ("buy") its top pick, highlighting the company's special dividend potential and gains from any in-market consolidation — a theme it expects to persist this year

** It sees potential for Telia and Tele2 to beat current forecasts for free cash flow, a key measure of a company's ability to generate cash

(Reporting by Marta Frackowiak)

((marta.frackowiak@thomsonreuters.com))