TalkTalk: Credit Suisse cuts target price
(CercleFinance.com) - Credit Suisse reiterates its "underperform" rating on the TalkTalk share, having cut its corresponding target price from 90 pence to 80 pence, taking into account the telecommunications group's latest publications, the impact of the Covid-19 crisis and the adoption of the IFRS16 standard.
The broker believes that "TalkTalk continues to face the challenge of balancing subscriber growth and profitability", which it believes will "only become more difficult, in our view, as Ofcom likely moves to a more pro-investment stance over the next 5 years".
The market seems to agree - the share is down over 1.8% in late morning trading on Monday.
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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.
The broker believes that "TalkTalk continues to face the challenge of balancing subscriber growth and profitability", which it believes will "only become more difficult, in our view, as Ofcom likely moves to a more pro-investment stance over the next 5 years".
The market seems to agree - the share is down over 1.8% in late morning trading on Monday.
Copyright (c) 2020 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.