Morgan Stanley analyst Terence Tsui has maintained their neutral stance on 0G8C stock, giving a Hold rating on November 3.
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Terence Tsui’s rating is based on Telenor’s updated financial outlook, which suggests steady but modest growth in the coming years. The company anticipates low single-digit growth in Nordic service revenues and low-to-mid single-digit growth in organic EBITDA, supported by stable operating expenses. Additionally, Telenor plans to reduce its capital expenditure to sales ratio, aiming for a decrease below 13% by 2028 and further to 11–12% by 2030.
Despite these positive projections, the growth targets are slightly lower compared to previous expectations set for 2023-2025. The free cash flow before mergers and acquisitions is expected to grow at a mid-to-high single-digit compound annual growth rate from 2025, but it will not fully cover the group dividend until around 2028. These factors contribute to a cautious outlook, justifying the Hold rating as Telenor’s growth prospects, while stable, are not sufficiently compelling to warrant a more bullish recommendation.
In another report released on November 3, Barclays also maintained a Hold rating on the stock with a NOK165.00 price target.