JPM sees some risks to European telecoms growth in 2025
** J.P.Morgan expects European telecoms to post further growth in earnings in 2025, but with some risks
** The broker notes increasing revenues and profitability, and says the sector is past peak capital spending
** However, it notes "mixed" Q3 results and warns that heightened promotional activities and high interest rates could affect profitability, forcing financial discipline
** JPM downgrades Elisa ELISA.HE to "neutral" from "overweight", as it expects the Finnish group to face prolonged soft underlying growth in 2025 while the market remains competitive
** It cuts France's Bouygues BOUY.PA to "neutral" from "overweight" citing the La Poste acquisition and its delayed profitability
** JPM also lowers Proximus PROX.BR to "neutral" from "overweight", saying it is difficult to estimate the potential value creation from the Fibreklaar deal
COMPANY | RATING | OLD RATING | PT | OLD PT |
Bouygues | neutral | overweight | EUR 37.0 | EUR 44.5 |
Proximus | neutral | overweight | EUR 8.6 | EUR 13.0 |
Elisa | neutral | overweight | EUR 50.0 | EUR 55.0 |
Telia | neutral | - | SEK 33.0 | SEK 31.0 |
Tele2 | neutral | - | SEK 114.0 | SEK 104.0 |
Eutelsat | underweight | - | EUR 2.8 | EUR 3.0 |
Reporting by Vera Dvorakova
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