Euskaltel: Barclays upgrades to overweight
(CercleFinance.com) - Barclays has upgraded its rating on the Euskaltel from "weight in line" to "overweight," while raising its corresponding target price from 8.
5 euros to 10 euros, seeing forthcoming improvements in its risk-return ratio for the share of the Spanish telecommunications group.
The brooker expects the company to stabilise its customer base, with competition returning to service, quality and price after excessively targeting fiber in recent years, which has reduced Euskaltel's competitive advantage on its main markets.
"Separately, EKT will expand nationally, targeting the other 85% of Spain it currently doesn't service, which adds a growth lever to the story," adds the broker, which now models a five-year revenue and EBITDA CAGR of +3%/+4.5%.
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