Telia: shares up after Barclays upgrades stock
(CercleFinance.com) - Telia shares are up about 2% on Monday after Barclays said that it is upgrading the stock from "underweight" to "overweight.
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The brokerage firm also lifted its target price from 40 Swedish kronor to 50 Swedish kronor.
"Our historical negative stance on Telia has been based upon worsening service revenue trends, negative earnings momentum, and high relative valuation compared with the other Nordic Telcos," Barclays said in a note.
However, the situation has changed, it added.
"We believe recent price increases in Sweden (mobile and fixed) should improve growth going forwards, and confirm our view that the Nordic markets remain a good place to invest," the broker wrote.
Telia shares, which have inched up just 1% year-to-date, were trading 1.9% higher at 42 Swedish kronor in mid-morning trading on the Nasdaq OMX market.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
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The brokerage firm also lifted its target price from 40 Swedish kronor to 50 Swedish kronor.
"Our historical negative stance on Telia has been based upon worsening service revenue trends, negative earnings momentum, and high relative valuation compared with the other Nordic Telcos," Barclays said in a note.
However, the situation has changed, it added.
"We believe recent price increases in Sweden (mobile and fixed) should improve growth going forwards, and confirm our view that the Nordic markets remain a good place to invest," the broker wrote.
Telia shares, which have inched up just 1% year-to-date, were trading 1.9% higher at 42 Swedish kronor in mid-morning trading on the Nasdaq OMX market.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.