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Sunrise Communications AG Class A (CH:SUNN)
:SUNN

Sunrise Communications AG Class A (SUNN) AI Stock Analysis

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CH:SUNN

Sunrise Communications AG Class A

(SUNN)

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Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
CHF51.00
▲(3.83% Upside)
Action:ReiteratedDate:02/20/26
Overall score reflects strong and resilient cash generation and supportive technical trend, offset by recurring net losses and above-average leverage risk. A high dividend yield helps, but negative earnings (negative P/E) constrains the valuation case.
Positive Factors
Subscription-based revenue
A subscription-driven business model yields recurring, predictable revenue and higher customer lifetime value. For a telecom, steady monthly cash inflows support ongoing network investment, reduce volatility versus one-off sales, and underpin multi-year cash generation and planning.
High gross margin
A ~72.5% gross margin indicates durable cost efficiency in core services, allowing the company to absorb competitive pricing or invest in network and services. High gross margins provide a structural buffer to protect EBIT and cash flow under modest revenue headwinds.
Improving leverage and cash resilience
Lower leverage and slight free cash flow growth demonstrate progress on balance sheet repair and cash generation. Reduced financial risk enhances flexibility for capex, spectrum or M&A, and lowers refinancing vulnerability across the medium term.
Negative Factors
Negative profitability
A sustained negative net margin (~-12%) shows the company is not converting high gross profits into net earnings, signaling structural cost, SG&A, or financing issues. Persistent losses erode equity and limit retained earnings for reinvestment over time.
Revenue contraction
Declining revenue, even modestly, undermines scale economics critical for telecoms where fixed costs and capex are high. Over multiple quarters, shrinking top-line can pressure margins, slow network upgrades, and weaken competitive positioning versus growing peers.
Negative return on equity
A negative ROE indicates the company is destroying shareholder capital rather than earning returns on equity. Over the medium term this constrains the ability to attract investment, hampers dividend sustainability, and signals inefficiencies in capital allocation.

Sunrise Communications AG Class A (SUNN) vs. iShares MSCI Switzerland ETF (EWL)

Sunrise Communications AG Class A Business Overview & Revenue Model

Company DescriptionSunrise Communications AG engages in the provision of telecommunications solutions. It offers mobile, broadband, television, and fixed-line telephony services to residential customers. It also provides mobile and broadband services, as well as a range of value-added portfolio services, including cloud services, cybersecurity, and automation to business customers. It operates through the following segments: Residential Customers, Business Customers and Wholesale, and Infrastructure and Support Functions. The Residential Customers segment provides fixed-line and mobile services to residential end customers as well as sales of handsets. The Business Customers and Wholesale segment offers a full range of products and services, from fixed-line and mobile communications to Internet and data services as well as integration services to different business areas. The Infrastructure and Support Functions segment includes support units such as network, information technology and operations as well as staff functions like finance, human resources and strategy. The company was founded in 2001 and is headquartered in Opfikon, Switzerland.
How the Company Makes MoneySunrise Communications generates revenue primarily through its subscription-based services in mobile and fixed-line telephony, broadband internet, and television offerings. The company charges customers monthly fees for mobile plans, internet access, and TV subscriptions, which constitute a significant portion of its revenue. Additional revenue streams include one-time fees for device sales, value-added services, and various business solutions tailored for corporate clients. Strategic partnerships with content providers and technology companies also contribute to its earnings by enhancing service offerings and attracting more subscribers.

Sunrise Communications AG Class A Financial Statement Overview

Summary
Mixed fundamentals: cash flow is a clear strength (consistently strong operating cash flow and solid free cash flow), but earnings quality is weak with recurring net losses and inconsistent operating profitability. The balance sheet adds risk due to elevated leverage (debt consistently above equity), making the company more sensitive if profitability remains weak.
Income Statement
46
Neutral
Revenue has been broadly flat over 2021–2024, followed by a stronger uptick in 2025 (+13.8%). However, profitability remains a key weak point: net income is negative in most years (losses in 2021, 2023, 2024, and 2025), and operating profit has been inconsistent (including a negative year in 2022). While EBITDA is sizable, it has not translated into consistent bottom-line profitability, suggesting meaningful non-operating costs (e.g., depreciation, interest, or other charges) weighing on earnings.
Balance Sheet
44
Neutral
Leverage is elevated for the business profile, with total debt rising to ~6.7B in 2025 and debt consistently exceeding equity (debt-to-equity above 1.0 in 2022–2024, peaking above 2.6 in 2021). Equity is meaningful (~4.0B in 2025), but returns on equity have been negative in most years, reflecting that the capital base is not consistently generating profits. Overall, the balance sheet appears serviceable but carries above-average leverage risk, especially if earnings remain weak.
Cash Flow
72
Positive
Cash generation is a clear strength: operating cash flow has been consistently strong (~1.0–1.3B annually), and free cash flow remains solid (~0.6–0.9B). Even with a decline in 2025 free cash flow (down ~10%), the company continues to produce meaningful cash after investment needs. This cash flow resilience helps offset reported net losses and supports debt servicing capacity, although the recent free cash flow pullback is a watch item.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue2.98B3.02B3.04B3.04B3.04B
Gross Profit656.00M2.19B2.20B2.22B2.21B
EBITDA1.10B1.10B1.18B1.55B1.33B
Net Income-112.20M-365.80M-316.10M80.50M-71.80M
Balance Sheet
Total Assets11.72B12.06B12.61B13.21B12.86B
Cash, Cash Equivalents and Short-Term Investments273.20M351.80M4.80M2.30M5.50M
Total Debt6.71B5.90B6.68B7.16B7.93B
Total Liabilities7.65B7.68B9.03B9.16B9.80B
Stockholders Equity4.05B4.36B3.55B4.03B3.04B
Cash Flow
Free Cash Flow600.20M738.00M733.50M835.30M911.30M
Operating Cash Flow995.80M1.28B1.20B1.25B1.27B
Investing Cash Flow-503.80M-478.70M-760.60M-543.00M-333.20M
Financing Cash Flow-566.60M-454.40M-440.10M-714.00M-945.40M

Sunrise Communications AG Class A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price49.12
Price Trends
50DMA
43.42
Positive
100DMA
43.52
Positive
200DMA
44.44
Positive
Market Momentum
MACD
1.54
Negative
RSI
74.33
Negative
STOCH
55.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SUNN, the sentiment is Positive. The current price of 49.12 is above the 20-day moving average (MA) of 46.48, above the 50-day MA of 43.42, and above the 200-day MA of 44.44, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 74.33 is Negative, neither overbought nor oversold. The STOCH value of 55.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SUNN.

Sunrise Communications AG Class A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
CHF37.37B29.413.87%27.12%-25.85%
61
Neutral
CHF3.58B-31.667.96%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:SUNN
Sunrise Communications AG Class A
49.12
10.98
28.78%
CH:SCMN
Swisscom AG
721.50
229.16
46.54%

Sunrise Communications AG Class A Corporate Events

Sunrise Lifts Cash Flow, Delivers Dividend Growth on Stable 2025 Results
Feb 18, 2026

Sunrise Communications AG reported that it met its 2025 financial targets, delivering solid commercial performance with net growth of 82,000 mobile postpaid customers and a broadly stable internet base. Revenue slipped 1.1% to CHF 2.98 billion, but adjusted EBITDAaL edged up 0.9% and adjusted free cash flow rose 4.7% to CHF 379.7 million, supported by a 6.1% reduction in capital expenditure and tighter cost discipline.

The company proposed a 2.7% higher dividend for 2025, totaling about CHF 251 million, and signaled a progressive dividend policy backed by further free cash flow growth in 2026. Management expects largely stable revenue, around CHF 1 billion in adjusted EBITDAaL, a capex ratio below 15% of revenue and adjusted free cash flow between CHF 380 million and CHF 400 million, underpinned by its multi-brand strategy, 5G-led network investments and SME-focused B2B expansion.

The most recent analyst rating on (CH:SUNN) stock is a Hold with a CHF45.00 price target. To see the full list of analyst forecasts on Sunrise Communications AG Class A stock, see the CH:SUNN Stock Forecast page.

Sunrise Business Brings Enterprise-Level ICT Bundle to Swiss SMEs
Feb 17, 2026

Sunrise Business has launched “KMU Future Ready,” a premium bundle that brings large-enterprise-level ICT services to Swiss small and medium-sized enterprises, featuring high-speed business internet at 1 or 10 Gbit/s and beyond, integrated cybersecurity, and redundancy via the Sunrise 5G mobile network. The offer, starting at CHF 149 per month with long-term contracts, includes 24/7 access to a local certified ICT expert team and optional telephony, aiming to make robust, plug-and-work or more complex digital infrastructure accessible to SMEs.

Beyond connectivity, KMU Future Ready opens SME access to advanced enterprise solutions such as SD-WAN, mobile private networks, IoT, cloud services and managed workplace options, all available as add-ons tailored by Swiss-based experts. By leveraging more than 25 years of experience with major corporate clients, Sunrise Business is positioning itself to deepen its role in the SME segment, potentially strengthening its market share and helping smaller firms adopt sophisticated, resilient ICT architectures previously reserved for large customers.

The most recent analyst rating on (CH:SUNN) stock is a Hold with a CHF45.00 price target. To see the full list of analyst forecasts on Sunrise Communications AG Class A stock, see the CH:SUNN Stock Forecast page.

Sunrise Extends MVNO Partnerships With TalkTalk and Digital Republic to 2029
Feb 17, 2026

Sunrise Communications AG has reinforced its role as Switzerland’s leading MVNO wholesale provider as mobilezone subsidiaries TalkTalk and Digital Republic extended their long-standing MVNO agreements with Sunrise until 2029. Both brands, which have used the Sunrise network for years, offer a broad range of mobile and internet services to private and business customers and have achieved high customer satisfaction scores, benefiting from Sunrise’s network quality.

The early renewal of these contracts underscores the mutual success of the partnership and secures network access for TalkTalk and Digital Republic over the medium term, allowing Sunrise to deepen its presence across various market segments. With a total of eight MVNO partners, Sunrise consolidates its position as the primary wholesale network partner for Swiss virtual operators, strengthening its competitive standing and offering continuity and stability for customers and stakeholders in the Swiss telecom market.

The most recent analyst rating on (CH:SUNN) stock is a Hold with a CHF45.00 price target. To see the full list of analyst forecasts on Sunrise Communications AG Class A stock, see the CH:SUNN Stock Forecast page.

Sunrise Cuts 147 Jobs as Part of Streamlined Organizational Overhaul
Feb 5, 2026

Sunrise Communications AG is restructuring its organization to create clearer responsibilities, reduce hierarchy levels and consolidate overlapping functions, aiming to become faster, more agile and more effective in the Swiss telecommunications market. As a result of this reorganization and following a consultation process with employee representatives and the syndicom union, the company will cut 147 jobs, down from the initially planned 190, affecting both management and non-management roles but largely sparing Sunrise Shop and frontline customer service staff, while implementing a comprehensive social plan that includes financial support, outplacement services, bridging funds, special arrangements for employees over 58 and measures to help younger employees re-enter the labor market.

The most recent analyst rating on (CH:SUNN) stock is a Hold with a CHF45.00 price target. To see the full list of analyst forecasts on Sunrise Communications AG Class A stock, see the CH:SUNN Stock Forecast page.

Sunrise Launches Job-Cut Consultation as Part of Streamlining Drive
Jan 8, 2026

Sunrise is restructuring its organisation to simplify its company structure and increase efficiency, targeting shorter decision-making paths through wider management spans, fewer hierarchy levels and greater use of new technologies. As part of this streamlining, the company has launched a consultation procedure with employee representatives and the syndicom trade union on a planned reduction of up to 190 jobs, mainly affecting management positions while largely excluding shop and customer service staff with direct customer contact and fully exempting apprentices. The process is expected to conclude with potential dismissals in February and March 2026, and Sunrise has highlighted a comprehensive social plan that offers financial support, outplacement services, a fund for hardship and qualification measures, special provisions for employees over 58 including bridging contracts and early retirement contributions, and a focus on rapid reintegration of younger employees into the labour market, aiming to mitigate the impact of the cuts on affected staff and maintain operational stability.

The most recent analyst rating on (CH:SUNN) stock is a Sell with a CHF36.00 price target. To see the full list of analyst forecasts on Sunrise Communications AG Class A stock, see the CH:SUNN Stock Forecast page.

Sunrise Communications AG Announces Termination of Class B ADS Program
Dec 15, 2025

Sunrise Communications AG has announced the termination of its sponsored Class B American Depositary Shares (ADS) program, effective January 30, 2026. The majority of Class B ADSs have already been exchanged for Class B shares, and the remaining shares will be converted into Class A shares and sold by the depositary bank. This move follows the termination of the Class A ADS program and is part of Sunrise’s strategic adjustments to streamline its share structure, potentially impacting stakeholders by altering the distribution of shares and proceeds.

The most recent analyst rating on (CH:SUNN) stock is a Sell with a CHF36.00 price target. To see the full list of analyst forecasts on Sunrise Communications AG Class A stock, see the CH:SUNN Stock Forecast page.

Sunrise Business Unveils New Solutions to Support SMEs During Christmas Season
Dec 9, 2025

Sunrise Business has launched three new solutions aimed at supporting SMEs during the critical Christmas business period. These offerings include the KMU Ready Connect & Pay package for secure cashless payments, Digital Signage for effective marketing visibility, and Cyber-Risk Discovery for enhanced cybersecurity. These solutions are designed to ensure SMEs have stable connectivity, professional marketing tools, and robust cybersecurity, enabling them to focus on their core business activities and succeed in the competitive market.

The most recent analyst rating on (CH:SUNN) stock is a Sell with a CHF36.00 price target. To see the full list of analyst forecasts on Sunrise Communications AG Class A stock, see the CH:SUNN Stock Forecast page.

Sunrise Communications AG Achieves Top Rating in Mobile Network Quality for Tenth Year
Nov 26, 2025

Sunrise Communications AG has been recognized for its outstanding mobile network quality, receiving the highest rating for the tenth consecutive year in the connect Mobile Network Test. The company boasts the largest 5G network in Switzerland and the only nationwide 5G Standalone network, enhancing customer experience with superior mobile connections for digital work, AI, cloud applications, and entertainment. Sunrise’s network performance excels in interactive video calls and e-gaming, and it shares top honors in mobile telephony and data connection reliability.

The most recent analyst rating on (CH:SUNN) stock is a Sell with a CHF36.00 price target. To see the full list of analyst forecasts on Sunrise Communications AG Class A stock, see the CH:SUNN Stock Forecast page.

Sunrise Concludes Class A ADS Program, Maintains SIX Listing
Nov 20, 2025

Sunrise Communications AG announced the termination of its sponsored Class A ADS program, with 93.1% of the ADSs exchanged for Class A shares. The remaining shares were sold in an accelerated bookbuilding transaction, and proceeds will be distributed to former ADS holders. This move maintains Sunrise’s presence on the SIX Swiss Exchange under the ticker ‘SUNN’, potentially streamlining its operations and reinforcing its market position.

The most recent analyst rating on (CH:SUNN) stock is a Buy with a CHF51.00 price target. To see the full list of analyst forecasts on Sunrise Communications AG Class A stock, see the CH:SUNN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 20, 2026