Analyst Emmet Kelly of Morgan Stanley maintained a Buy rating on Swisscom AG, with a price target of CHF730.00.
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Emmet Kelly has given his Buy rating due to a combination of factors observed in Swisscom AG’s recent performance. Despite a mixed Q2 report, where the top-line slightly missed expectations, the company’s EBITDAaL exceeded forecasts, indicating strong operational efficiency. This was particularly evident in Switzerland, where cost savings helped maintain stable year-over-year EBITDAaL, and net additions in postpaid, broadband, and TV services showed positive trends.
In Italy, Swisscom’s strategic shift from a volume to a value proposition appears promising, with improved churn rates partially offsetting lower net additions. Additionally, the ongoing integration of Vodafone Italy is progressing well, with significant synergies already realized and further savings expected to ramp up in the second half of the year. These strategic initiatives, coupled with the company’s ability to manage costs effectively, underpin Emmet Kelly’s optimistic outlook and Buy rating for Swisscom AG.
Kelly covers the Services sector, focusing on stocks such as Deutsche Telekom, Royal KPN NV, and Swisscom AG. According to TipRanks, Kelly has an average return of 6.7% and a 56.79% success rate on recommended stocks.