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TCELL: Expanded 5G Spectrum Portfolio Will Support Long-Term Earnings Power

Digital Transformation And Turkey Urbanization Will Expand Telecom Connectivity

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TCELL
AnalystHighTarget
Not Invested
Published 24 Jun 2025

Update shared on 17 Dec 2025

Fair value Decreased 9.74%
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AnalystHighTarget's Fair Value
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1Y
5.0%
7D
0.9%

Analysts have trimmed their price target for Turkcell Iletisim Hizmetleri from approximately $189.46 to $171.00, citing expectations of stronger top line growth, offset by lower projected profit margins and a slightly higher discount rate.

What's in the News

  • Turkcell entered a major strategic partnership with Google Cloud to launch a new cloud region in Turkiye, boosting its data center and cloud capabilities and positioning the country as a regional hub for digital innovation (Key Developments).
  • The company revised its 2025 guidance, now targeting around 10% revenue growth, underpinned by an expected approximately 43% increase in data center and cloud revenues (Key Developments).
  • Turkcell secured 160 MHz of 5G spectrum for about USD 1.224 billion, extending its mobile licenses to 2042 and reinforcing its lead as the operator with the widest 5G frequency portfolio in Turkiye, with commercial 5G launch planned from April 1, 2026 (Key Developments).

Valuation Changes

  • Fair Value Estimate: reduced from 189.46 TRY to 171.00 TRY, falling moderately as lower margin expectations outweigh stronger growth assumptions.
  • Discount Rate: increased slightly from 29.09 percent to 29.57 percent, implying a marginally higher perceived risk profile for future cash flows.
  • Revenue Growth: revised up modestly from 35.59 percent to 37.23 percent, reflecting a slightly more optimistic outlook for top line expansion.
  • Net Profit Margin: lowered significantly from 21.89 percent to 15.55 percent, indicating a more conservative view on profitability despite higher expected revenues.
  • Future P/E: increased from 9.08 times to 10.85 times, suggesting a somewhat richer valuation multiple applied to forward earnings.

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