Swisscom: Berenberg raises TP, but still a seller

(CercleFinance.com) - Berenberg said on Tuesday that it is nudging up its target price for the Swisscom share from 338 Swiss francs to 340 Swiss
francs (current price nearly 470 Swiss francs), while at the same time renewing its "sell" recommendation on the Swiss telecom operator's shares.


The German broker said that it is concerned about the aggressive price positioning adopted by Salt, one of the group's competitors, which is forcing other market players such as Sunrise and Swisscom to follow suit.

This "infernal spiral" - which sees consumers moving from well-established operators to cheaper offers - could cost Swisscom particularly dearly because of its high market shares in the "premium" segment of the market, Berenberg warns.


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