EUR 400.00 For Business Accounts Only

CELLNEX: ARQIVA AND THE CAPITAL INCREASE - THE STORY CONTINUES (ANÁLISIS BANCO SABADELL)

After the acquisition of Arqiva and with the ongoing rights issue, the story continues. New T.P. € 45/sh. BUY.
After Arqiva’s integration (expected to be closed in 2H’20) and with the capital increase under way, the impact on our fundamental valuation is +7%, with the leverage ratio falling to ~4.9x (from the current ~5.8x). Thus, CLNX would continue to have the flexibility to carry out several mid-sized M&A moves. A new theoretical exercise on future acquisitions would bring our valuation to € 45.00/sh. (post money). We reiterate our positive view on the stock due the visibility and robustness of the business, the management’s ability to deliver, a scenario of historically low rates, and the company’s better positioning as an independent operator in Europe, as well as the fact that it continues to be an appealing target for larger operators (American Tower?), even more so if it continues to increase its footprint.