Update shared on 01 Dec 2025
Fair value Increased 0.38%Analysts have raised their price target for Tele2 from SEK 161.02 to SEK 161.63, citing expectations of favorable industry conditions and improved margins, which they believe could support near-term share performance.
Analyst Commentary
Recent analyst activity reflects evolving sentiment on Tele2, with upward revisions and renewed attention to potential sector tailwinds. Key takeaways from this period provide insight into both optimistic and cautious outlooks for the company’s valuation and operational trajectory.
Bullish Takeaways
- Bullish analysts anticipate that ongoing industry consolidation and potential mergers may create catalysts for near-term share outperformance.
- Improved operating margins are considered sustainable, which supports a higher price target and enhances overall earnings quality.
- Optimism remains around Tele2’s ability to execute on cost savings initiatives. These efforts are expected to drive profitability and justify valuation upgrades.
- Sector-wide re-ratings suggest that Tele2’s growth prospects are increasingly attractive compared to peers, especially as market dynamics evolve.
Bearish Takeaways
- Bearish analysts express caution regarding potential integration risks related to mergers, which could impact execution and erode near-term gains.
- There are concerns about heightened competition in the telecom sector. This may pressure pricing power and slow growth momentum.
- Risks surrounding regulatory changes remain, with possible implications for strategic flexibility and long-term valuation.
- Some question the durability of margin improvements in a rapidly shifting competitive landscape and advise vigilance on operational discipline.
Valuation Changes
- Fair Value Estimate has risen slightly, increasing from SEK 161.02 to SEK 161.63.
- Discount Rate remains essentially unchanged and is consistent at approximately 5.07%.
- Revenue Growth expectations have fallen moderately, decreasing from 2.03% to 1.81%.
- Net Profit Margin has improved, rising from 19.19% to 19.40%.
- Future Price-to-Earnings (P/E) ratio is nearly steady, with a marginal decrease from 21.45x to 21.45x.
Disclaimer
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