Berenberg sees shift to 'defensive growth' for European telecoms
Berenberg predicts transition from "defensive" to "defensive growth" for European telecom stocks as it initiates or re-initiates coverage on 20 companies from the sector
It sees sustainable free cash flow growth of 10% annually for the sector over 2025-2030, following prolonged period of lacklustre returns and underperformance vs the wider market
The broker expects that savings in capital expenditure and operating expenditure will boost earnings, with gross capex and opex expected to fall by 5 billion euros and 2.5 billion euros per year respectively over 2025-2030 as telecoms operators complete their fibre/5G network roll outs and shut down copper/PSTN
It prefers European telecoms stocks that create value for investors, deliver positive cash returns momentum and screen as "relatively cheap" vs the sector
The broker's top picks include BT Group BT.L, Deutsche Telekom DTEGn.DE, Cellnex CLNX.MC, Telecom Italia TLIT.MI, SES SESFg.LU, Zegona ZEG.L and Proximus PROX.BR, which it expects to offer the most upside for investors
COMPANY | RATING | PT |
|---|---|---|
Proximus | BUY | EUR 11.10 |
Sunrise Communications | HOLD | CHF 49.00 |
Telecom Italia (Ords) | BUY | EUR 0.52 |
Telecom Italia (Savs) | BUY | EUR 0.52 |
Zegona | BUY | GBP 1,000 |
BT Group | BUY | GBP 2.40 |
Cellnex Telecom | BUY | EUR 46.00 |
Elisa | BUY | EUR 54.00 |
INWIT | BUY | EUR 12.30 |
KPN | BUY | EUR 4.78 |
Orange | BUY | EUR 15.00 |
SES | BUY | EUR 9.60 |
Liberty Global | HOLD | USD 11.00 |
Swisscom | HOLD | CHF 569.00 |
Tele2 | HOLD | SEK 125.00 |
Telefonica | HOLD | EUR 4.30 |
Telenor | HOLD | NOK 138.00 |
Telia Company | HOLD | SEK 30.00 |
Vodafone | HOLD | GBP 0.80 |
Related Articles
Silver Plunges 10%, Gold Tests $4,900: Is the Bull Market Over Ahead of CPI?
TradingKey - Ahead of the release of the U.S. January CPI report, financial markets experienced a sudden broad sell-off on Thursday. Alongside a sharp decline in U.S. equities, prices for commodities such as gold (XAUUSD) also plummeted. Gold dropped nearly $200 within a 30-minute window, a decline
Bitcoin Price Prediction 2029-2035: Institutional Accumulation and the U.S. Treasury’s Strategic Reserve Pivot
Explore the 2026 Bitcoin landscape: From the U.S. Strategic Reserve and Michael Saylor’s $75B war chest to Cathie Wood’s 2030 forecast. Is BTC the new Digital Gold?
This $1 Trillion AI Stock Is Getting Ready for 2026: Is Meta a Good Buy?
When ads and commerce are factored in, Meta is building a long-term platform—in Augmented Reality and smart glasses — to get us closer to the future of AI. This device hardware business is less profitable than ads right now, but it could grow the company’s ecosystem and open up new ways for it to ma
Is SaaS Dead? The Truth Behind the Software Meltdown, the Missing Floor, and the Peak That’s Not Coming Back
TradingKey - A trillion dollars just vanished from software stocks—this piece breaks down who AI is really killing, who quietly benefits, and why cheap SaaS may be the biggest value trap of this cycle.
