Mobile and broadband pair trades to consider this summer

While we have been intensively focused on such things as a Presidential intervention to prevent a Chapter 11, we admit that our mind occasionally drifts to thoughts of summer. So to help others who may have similar thoughts, we thought, in honor of summer beginning, we should provide our thoughts as to which alcohols pair best with the purchase of the stocks we cover (actually, we just asked ChatGPT and, given its attitude about intellectual property, we have no fears about just cutting and pasting what it wrote).

NOS (Sell, TP: €3.11, -18%) Digi (Underweight) Altice International (Equal Weight) Proximus (Neutral, TP: €12.5, +55%) How successful will Digi be as a new entrant– top-down assessment. Downgrade NOS to Reduce, stay Equal weight ATCI and P

One of the key questions in European Telecoms at the moment is how successful will Digi be in Portugal, Spain and Belgium; and to a lesser extent, how successful can the challengers be in general: Salt, Iliad Italy, and so on. In this report, we take a top-down look at how spectrum drives success in European mobile, and what that means for future outcomes.

Orange (Buy, TP: €14, +35%) Altice France (SFR); High Yield (Overweight) Iliad; High Yield (Equal weight)

Last night Bouygues announced a surprise change to tariffs and updated some of its guidance. The new tariffs revolve around discounts for multiple SIMs, and follow on from Iliad’s family plan announcement on 1 October. We give our take on the new plans and the impact to the market in this short piece.

WPP : Momentum to remain difficult in Q2 and beyond, despite accelerating restructuring

ODDO : Cession de l’entité UK de Sabadell (TSB) à Santander

Euronext : Potentially small M&A structured fully with shares, we appreciate the strategic thinking and excellent allocation of capital