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TLS - Telstra News Story

NZD3.72 0.0  0.0%

Last Trade - 14/05/21

Sector
Telecoms
Size
Large Cap
Market Cap £22.56bn
Enterprise Value £32.38bn
Revenue £12.39bn
Position in Universe 16th / 1913

BUZZ-Messy break-up? Jefferies reviews Telstra's plan to split

Thu 12th November, 2020 10:03pm
** Jefferies highlights challenges facing Australia's
biggest telecom firm Telstra  TLS.AX  after it lays out a
restructuring plan and long-term profit forecast
    ** TLS said on Thursday it would split into three units,
divest its mobile towers and aim for underlying EBITDA of A$7.5
bln-A$8.5 bln ($5.43 bln-$6.15 bln) by 2023  urn:newsml:reuters.com:*:nL4N2HX4Q0
    ** Jefferies estimates TLS' infrastructure assets could be
worth A$35.7 bln and radio access network and spectrum assets
worth A$33.5 bln, implying a break-up valuation of A$4.52/share
    ** Says hurdles to monetising all infrastructure assets
include questions around excess capacity, ownership structure
and government regulations
    **    Brokerage says its probability weighted break-up
valuation is A$3.33/share, an 11.4% upside to the stock's
Thursday close of A$2.99
    ** Jefferies has "hold" rating on TLS and values its mobile
towers at A$4 bln
    ** Calls TLS' FY23 earnings target "too optimistic" and
forecasts underlying EBITDA to be flat vs FY20
    ** Lifts PT to A$3.29 from A$3.10, but still below 11
analysts' median of A$3.50 - Refinitiv Eikon data

($1 = 1.3816 Australian dollars)

 (Reporting by Shashwat Awasthi in Bengaluru; Editing by Sam
Holmes)
 ((Shashwat.Awasthi@thomsonreuters.com))
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