Iliad: Credit Suisse cuts target price
(CercleFinance.com) - Following the publication of the parent company of the telecom operator Free, Iliad's interim results, Credit Suisse has reduced its target price for the share from 155 euros to 130 euros (-20%).
Analysts maintain their neutral rating on the stock.
After the loss of subscribers suffered by Free in France over the first half of 2018, Credit Suisse has lowered its forecast of the number of Free mobile users by around one million in 2019. Note that analysts have also raised their average revenue forecast (ARPU), with Free improving its product mix. However, in the end, analysts have reduced their forecast for growth in mobile revenues for 2019. Free will have a hard time regaining lost ground given the level of competition in this segment, Credit Suisse fears.
In landline telephony, Credit Suisse has cut its forecast for the number of broadband customers by around 200,000, corresponding to revenues of 3% - even though this figure should stabilise in 2019, because of the latest commercial initiatives.
In the French telecom sector, Credit Suisse prefers Bouygues and Orange.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Analysts maintain their neutral rating on the stock.
After the loss of subscribers suffered by Free in France over the first half of 2018, Credit Suisse has lowered its forecast of the number of Free mobile users by around one million in 2019. Note that analysts have also raised their average revenue forecast (ARPU), with Free improving its product mix. However, in the end, analysts have reduced their forecast for growth in mobile revenues for 2019. Free will have a hard time regaining lost ground given the level of competition in this segment, Credit Suisse fears.
In landline telephony, Credit Suisse has cut its forecast for the number of broadband customers by around 200,000, corresponding to revenues of 3% - even though this figure should stabilise in 2019, because of the latest commercial initiatives.
In the French telecom sector, Credit Suisse prefers Bouygues and Orange.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.