TTKOM: Upgraded Rating Will Support Confidence As Margin Expansion Strengthens

Analysts have modestly raised their price target on Türk Telekomünikasyon Anonim Sirketi to TRY 57.80, reflecting increased conviction in the company’s near term upside potential following a recent upgrade to Accumulate and supportive fundamentals.

Analyst Commentary

Analysts highlight a balanced risk reward profile for Türk Telekomünikasyon Anonim Sirketi, with improving fundamentals supporting the recent price target increase to TRY 57.80. While the near term outlook has strengthened, some execution and macro sensitivities remain in focus.

Bullish Takeaways

• Bullish analysts see the upgraded price target as reflecting stronger visibility on earnings growth, supported by resilient subscriber trends and disciplined pricing.
• Improving operating leverage and cost control are viewed as key drivers for margin expansion, which underpins upside potential compared with current valuation multiples.
• Ongoing investments in network quality and digital services are expected to sustain top line momentum and support a re rating as execution continues to meet guidance.
• Analysts note that the stock still trades at a discount to regional telecom peers on forward earnings, suggesting further room for multiple expansion if growth delivers as expected.

Bearish Takeaways

• Bearish analysts remain cautious on macro and currency volatility, which could pressure translated earnings and limit the realization of the full upside implied by the new target.
• There are concerns that competitive intensity in mobile and fixed broadband could constrain pricing power, weighing on revenue growth and margin progression.
• Execution risks around capital expenditure and regulatory changes are seen as potential drags on free cash flow generation and, in turn, on the sustainability of higher valuations.
• Some analysts argue that a portion of the near term improvement is already priced in, leaving less room for further re rating if growth normalizes or guidance is not revised higher.

What's in the News

• Türk Telekomünikasyon Anonim Sirketi recently hosted an Analyst/Investor Day, providing updates on strategic priorities and financial outlook (Key Developments).

Valuation Changes

• Fair Value: Unchanged at TRY 73.89, indicating no revision to the long term intrinsic value estimate.
• Discount Rate: Stable at 29.57 percent, suggesting no reassessment of the company’s risk profile or cost of capital.
• Revenue Growth: Effectively unchanged at approximately 35.17 percent, reflecting consistent expectations for top line expansion.
• Net Profit Margin: Remains around 9.25 percent, with only immaterial rounding differences versus the prior estimate.
• Future P/E: Steady at about 13.54x, indicating no material change in forward valuation multiples applied to earnings.