Analysts have lowered their fair value estimate for Türk Telekomünikasyon Anonim Sirketi from TRY 75.72 to TRY 72.95. They cited modest improvements in profit margin and revenue growth, but these were offset by a slightly lower expected price-to-earnings ratio.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight recent profitability improvements, which are seen as a positive indicator for more stable and sustainable earnings going forward.
- Revenue growth, though modest, is viewed as a sign of resilience in a competitive market and may support upward momentum in valuation over time.
- The recent upgrade in rating to "Accumulate" reflects growing confidence in the company's ability to execute its strategic initiatives and capture additional market share.
- There is optimism that further operational efficiencies could strengthen margins and enhance long-term shareholder returns.
Bearish Takeaways
- Bearish analysts remain cautious due to the lower expected price-to-earnings ratio, which tempers upside potential and suggests some concerns over the company's valuation relative to industry peers.
- Growth in revenue, while present, is not seen as robust enough to drive significant re-rating in the near term.
- Ongoing market competition and potential regulatory pressures could limit the pace of earnings expansion.
- There is a view that current market conditions could challenge the company’s ability to meet more ambitious growth targets without further innovation or differentiation.
What's in the News
- Türk Telekomünikasyon Anonim Sirketi revised its earnings guidance for 2025. The company now expects approximately 10% operating revenue growth, up from earlier forecasts of 8% to 9% (Key Developments).
- The company attributes this upward revision to a strong revenue performance in the second half of the prior year and maintains a positive outlook for sustained growth (Key Developments).
Valuation Changes
- Fair Value Estimate: Decreased from TRY 75.72 to TRY 72.95, reflecting a modest downward revision in intrinsic valuation.
- Discount Rate: Remained unchanged at 28.69%.
- Revenue Growth: Increased fractionally from 33.25% to 33.26%.
- Net Profit Margin: Improved slightly, rising from 9.99% to 10.22%.
- Future P/E Ratio: Declined from 13.65x to 12.86x. This suggests a somewhat lower valuation multiple based on projected earnings.
Disclaimer
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