Morningstar - Telenor ASA (TELNY) We Are Increasing Our FVE for Telenor to NOK 164 Due to Strong Margin Expansion

Report

Morningstar

Allan C. Nichols

EUR 101.80 For Business Accounts Only

We Are Increasing Our FVE for Telenor to NOK 164 Due to Strong Margin Expansion

We are increasing our fair value estimate for Telenor to NOK 164 per local share from NOK 140, as well as $20 per ADR from $16.50, primarily due to improved EBITDA margins and currency effects for the ADR. The company also exceeded our near-term revenue projections, while average revenue per user, or ARPU, held up well. We are maintaining our narrow moat rating.
Telenor reported adjusted second quarter revenue growth of 1.7% year over year versus our full-year projection of 1%. However, reporte...

17/07/2017 13 EN

Underlying

Telenor ASA

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Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Allan C. Nichols

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Telenor Reports Mixed 1Q Results, With Weak Revenue but Strong EBITDA Margin; Shares Fairly Valued

Telenor reported mixed first-quarter results, with weak revenue but strong margins. We expect to maintain our fair value estimates of NOK 164 per local share and $21 per ADR, as well as our narrow moat rating. We believe the shares are fairly valued. The firmâ€™s reported revenue declined 1.5% year over year versus our full-year projection of a 3.7% drop. However, our projection is based on actual 2017 results and assumes the disposal of Telenorâ€™s central European operations at the end of June 201...

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We Are Increasing Our FVE for Telenor to NOK 164 Due to Strong Margin Expansion

Telenor Reports Mixed 1Q Results, With Weak Revenue but Strong EBITDA Margin; Shares Fairly Valued

Telenor Agrees to Sell Its Operations in Central and Eastern Europe; Shares Fairly Valued

Telenor increases its geographic focus by selling its Central and Eastern European operations.

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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