Telekom Austria confirmed at BUY, TP EUR 9.0 - Strong trends and valuation compensate for Belarus risk
Reiteration of BUY call and TP of EUR 9.0Our positive stance is based on a continued robust operating performance on accelerated digitalization trends and an appealing valuation with EV/EBITDA adj of around 4x representing a discount of approx. 25% to European peers
Belarus accounts for approx. 10% of group EBITDA, which obviously constitutes the biggest risk in the current environment (impact on fair value calculations of up to EUR 1 per share)
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.
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