Telekom Austria confirmed at BUY, TP EUR 8.40 - Structural growth, cost discipline & appealing valuation
Reiteration of BUY rating following continued strong operating trends in Q1 21TP hike to EUR 8.40 from EUR 8.10 resulting from a smaller upward revision of our FY 21-23e forecasts and an uptick of valuation multiples in the European telecom sector
We highlight: 1) structural demand growth for telecommunication services driven by accelerated digitalisation trends and ICT projects 2) excellent cost control, 3) the environment allows for price indexations in Austria and more for more bundles in CEE
Appealing valuation with EV/EBTDA adj. 21-22e of around 4.5x and PER 21-22e of 9.2x some 15-20% and 30% below the European telco sector median
Telekom Austria is engaged as full service telecommunications providers of long distance, local and wireless services, corporate data communications services as well as internet services and television broadcasting. Co. generates revenues from fixed line services and mobile communication services to individuals, commercial and noncommercial organizations and other national and foreign carriers. To a lesser extent, Co. generates revenue from the sale of mobile communications handsets. Co. also supplies telephones and technical equipment for telephone communications. These activities are conducted primarily in Austria, Croatia, Slovenia, Bulgaria, Serbia, Macedonia and Belarus.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.