Swisscom: shares attract attention after US broker upgrade.
(CercleFinance.com) - Shares of Swisscom surged 1.
6 per cent on Friday after Jefferies upgraded the stock to "buy" in a research note dedicated to Switzerland's telecom services.
The US brokerage firm raised its price target on the telecoms group to 546 Swiss francs, disagreeing on the common push back that its stock is "still expensive".
"We believe Swisscom's dividend yield is unfairly high, [which is all it needs] to justify a re-rating," Jefferies said, adding that the market exaggerates the ongoing risks posed by new entrant Salt.
The broker also thinks that in case of a break-up of Swisscom's Italian broadband firm Fastweb, which could be worth up to 7 billion euros, the shares could reach 581 Swiss francs.
The Swisscom shares are currently up 1.6 per cent at 463.9 Swiss francs.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
6 per cent on Friday after Jefferies upgraded the stock to "buy" in a research note dedicated to Switzerland's telecom services.
The US brokerage firm raised its price target on the telecoms group to 546 Swiss francs, disagreeing on the common push back that its stock is "still expensive".
"We believe Swisscom's dividend yield is unfairly high, [which is all it needs] to justify a re-rating," Jefferies said, adding that the market exaggerates the ongoing risks posed by new entrant Salt.
The broker also thinks that in case of a break-up of Swisscom's Italian broadband firm Fastweb, which could be worth up to 7 billion euros, the shares could reach 581 Swiss francs.
The Swisscom shares are currently up 1.6 per cent at 463.9 Swiss francs.
Copyright (c) 2017 CercleFinance.com. All rights reserved.