Iliad: Deutsche Bank cuts target price
(CercleFinance.com) - While maintains hold rating on Iliad, the parent company of the telecom operator Free, Deutsche Bank has cut its target price for the share by nearly 18%, from 170 euros to 140 euros, due to investments.
This suggests upside potential of over 40%.
Admittedly, analysts recognise that, "2018 was a tough year for Iliad," while "the strong operational momentum built up over the years waned". "The previously successful model of mass subscriber adds has been under attack with peers looking to follow suit leading to the tough pricing environment," Deutsche Bank notes. In addition, these negative factors remain significant in the near term, while Iliad's 2018 accounts are set to be published in March.
However, according to analysts, the group's operating income should improve from H2 2019, and recent commercial initiatives taken by Free could bear fruit.
Copyright (c) 2019 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.
This suggests upside potential of over 40%.
Admittedly, analysts recognise that, "2018 was a tough year for Iliad," while "the strong operational momentum built up over the years waned". "The previously successful model of mass subscriber adds has been under attack with peers looking to follow suit leading to the tough pricing environment," Deutsche Bank notes. In addition, these negative factors remain significant in the near term, while Iliad's 2018 accounts are set to be published in March.
However, according to analysts, the group's operating income should improve from H2 2019, and recent commercial initiatives taken by Free could bear fruit.
Copyright (c) 2019 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.