Iliad: still a buyer, UBS cuts target price

(CercleFinance.com) - Reviewing the Iliad case this morning, UBS analysts have confirmed their buy rating on the share of the French alternative telecoms operator.


However, the broker has slashed its 12-month target price by a quarter, from 267 euros to 200 euros.

UBS deems that the slowdown in Iliad's commercial performance over the past six months is due to special offers from its competitors SFR and Bouygues Telecom, and the lack of responsive from Xavier Niel's group. As a result, UBS has slashed its EPS estimates by around 20% between 2018 and 2020, which explains the cut in its target price.

"However, we believe the company's asset base, competitive advantage and management strategy support a 2017-20 OpCF CAGR far above sector average at 35%," the broker adds in its report.


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