DB ups Cellnex to 'buy" on updated Built-to-Suit capex consensus
** Deutsche Bank upgrades Spanish phone tower operator Cellnex CLNX.MC to "buy" from "hold" on updated BTS (Built-to-Suit) capex consensus
** While DB believes Cellnex has been "granular" on capex, it says consensus has been too low, which, now adjusted with free cash flow to equity (FCFE) consensus and long-term leverage, is now aligned with its view
** "Our previous cautious stance centred on BTS capex with consensus not modelling the upfront nature of the build"
** DBS models a 55% 3-year (2025-2028) FCFE CAGR and sees upside to cash returns over time owing to asset sales
** Despite no immediate catalysts, DB notes Cellnex has supportive newsflow, including an easing macro backdrop and potential further asset sales
** DB says sale of select assets in Ireland, Austria could see accelerated shareholder remuneration via a 2025 buy-back
** It adds a faster closing of the Ireland deal, expected at the end of 2024, could see upside to cash returns
Reporting by Jakub Olesiuk
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