Berenberg cuts Telia to "sell", says rally has outpaced cash flow growth
BUZZ-Berenberg cuts Telia to "sell", says rally has outpaced cash flow growth ** Berenberg downgrades Swedish telecommunications company Telia TELIA.ST to "sell", stating that its shares "more than discount the growth in cash flow"
** The broker notes the stock has surged 97% since late 2023, leaving it trading at a 15% to 40% premium to its Nordic telecoms peers from next year
** Telia's high mobile price premium versus competitors remains a concern that could restrict long-term growth, despite solid momentum expected in 2026
** The brokerage believes other telecoms firms offer greater savings and clearer consolidation benefits, as Telia has fewer strategic options than its rivals
** Despite the downgrade, the broker raises its PT by 29% to SEK 40, reflecting higher earnings estimates driven by cost cuts and the sale of its Latvian businesses
** Out of 19 analysts that cover Telia Company AB, three rate the stock "strong buy" or "buy,"ten rate "hold" and six rate the stock "strong sell" or "sell" - LSEG data
(Reporting by Agnieszka Olenska)