AnalystConsensusTarget updated the narrative for TEL2 B

Tele2's analyst price target has been raised from SEK 160 to SEK 161.02, as analysts cite expectations of revenue growth and improved profit margins due to anticipated sector consolidation.

Analyst Commentary

Following recent sector reviews, analysts have updated their views on Tele2, highlighting both encouraging prospects and areas of caution regarding the company's path forward.

• Bullish analysts believe that ongoing and potential mergers within the telecom sector could accelerate revenue growth and drive share price outperformance in the short term.
• There is an expectation that consolidation efforts may result in improved operating efficiency and stronger profit margins for Tele2.
• Rising price targets reflect optimism about Tele2’s ability to capture additional market share and deliver consistent execution amid industry changes.
• Recent rating upgrades suggest that the market is recognizing Tele2's enhanced growth prospects compared to peers.

• Bearish analysts caution that the benefits of sector consolidation may take longer than expected to materialize. This could potentially delay the impact on financial results.
• There are concerns that regulatory challenges could slow or complicate the merger process and add execution risk for Tele2.
• Some see limited room for further margin expansion in a highly competitive telecom landscape where pricing pressures remain a factor.

What's in the News

• Tele2 will carve out its telecom infrastructure assets and form the first tower company spanning all Baltic countries. The company will partner on a 50/50 basis with Global Communications Infrastructure LLC, which is backed by Manulife Investment Management (Key Developments).
• The new Baltic tower company, based in Lithuania, will own and operate around 2,700 tower and rooftop sites across Estonia, Latvia, and Lithuania (Key Developments).
• The transaction is valued at EUR 560 million and is expected to provide Tele2 with cash proceeds of approximately EUR 440 million. Tele2 will become the anchor tenant under a long-term 20-year agreement (Key Developments).
• As part of the deal, the parties have committed to a 10-year investment plan to further build out telecom sites and strengthen network coverage throughout the Baltics (Key Developments).
• The transaction is anticipated to have a negative EBITDAaL impact of about EUR 35 million in 2026. It is expected to close in early 2026, pending regulatory approvals (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has risen slightly from SEK 160 to SEK 161.02.
• Revenue Growth expectations have increased modestly, moving from 1.72% to 2.03%.
• Net Profit Margin is up from 18.41% to 19.19%.
• The Future P/E ratio has fallen from 22.47x to 21.46x, indicating a marginally lower valuation multiple.
• Discount Rate remains unchanged at 4.92%.