Analyst Terence Tsui of Morgan Stanley maintained a Hold rating on Telia Company AB, retaining the price target of SEK36.00.
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Terence Tsui’s rating is based on the performance of Telia Company AB in the recent quarter, where the company showed consistent EBITDA growth, particularly in Sweden. The Swedish operations benefited from service revenue growth and significantly reduced operating expenses, resulting in a 7.8% increase in EBITDA. However, despite these positive results in Sweden, the overall service revenue growth for the group was modest at 1.0%, indicating limited upside potential.
Norway’s performance was notably weaker, with a decline in both service revenues and EBITDA, which weighed on the overall outlook. Additionally, while Telia announced strategic moves such as divesting from Latvia and acquiring Bredband2, the lack of disclosed pricing for the divestment and the impact of these transactions on future performance remain uncertain. Given these mixed results and strategic uncertainties, Tsui has opted for a Hold rating, reflecting a cautious stance on the stock’s near-term prospects.
According to TipRanks, Tsui is a 3-star analyst with an average return of 4.1% and a 58.82% success rate. Tsui covers the Communication Services sector, focusing on stocks such as Tele2 AB, Telia Company AB, and BT Group plc.
In another report released on July 16, Deutsche Bank also maintained a Hold rating on the stock with a SEK27.00 price target.