Telia: Berenberg cuts target price

(CercleFinance.com) - Berenberg on Wednesday cut its target price for the Telia stock, citing "underappreciated" cash flow risks at the Swedish telecom operator.


The German broker shaved one crown off the stock's target price to 29 Swedish kronor from 30 Swedish kronor, while maintaining a "sell" rating on the share.

"Leverage pressure and cash flow headwinds are set to leave Telia's new management with limited room for investments in growth and strategic initiatives", Berenberg wrote in a research report this morning.

The broker therefore thinks that the recent dividend cut will not be enough and that a proper "rebasing" is likely under new management.

Telia shares were down 2.4% on Wednesday.

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