Update shared on03 Oct 2025
Fair value Increased 1.23%Analysts have raised their price target for Telia Company from SEK 38 to SEK 40, citing improved second quarter results and a stronger outlook for shareholder returns.
Analyst Commentary
Recent analyst sentiment toward Telia Company has shifted following improved second quarter performance and increased shareholder return prospects. The upgraded price target reflects growing confidence in the company’s outlook; however, analysts also remain attentive to potential challenges.
Bullish Takeaways
- Bullish analysts highlight Telia’s strong second quarter results, which exceeded market expectations and signal improved operating momentum.
- The increased price target is driven by confidence in continued shareholder returns through dividends and potential share buybacks.
- Recent cost efficiencies and restructuring efforts are expected to support margin expansion and sustainable profitability.
- Growth prospects in Telia’s core Nordic and Baltic markets are seen as stable, providing a solid foundation for future execution.
Bearish Takeaways
- Some analysts remain cautious about competitive pressures in the telecom sector, which could impact revenue growth if not managed effectively.
- Slower than expected progress on digital transformation initiatives could hinder long-term value creation.
- Execution risk remains, particularly around achieving targeted cost reductions and integration of new technology platforms.
Valuation Changes
- Fair Value Estimate has risen slightly from SEK 36.25 to SEK 36.70.
- Discount Rate remains unchanged at 4.92%.
- Revenue Growth projection has improved marginally, with the annual decline easing from -2.16% to -2.15%.
- Net Profit Margin is up slightly, increasing from 10.40% to 10.44%.
- Future P/E ratio has ticked higher from 18.90x to 19.05x.
Disclaimer
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