** The European telecoms sector is not expensive and remains "very investable", but needs "more synergistic M&As" and government support to outperform again, NewStreet Research says
** "We need to see more front-footed action from industry leaders," the brokerage says, citing state support into AI gigafactories or wireless infrastructure as potential catalysts
** NSR downgrades Telefonica BME:TEF to "reduce", saying its weaker growth outlook is not fully priced in
** It upgrades Cellnex BME:CLNX and Inwit MIL:INW to "buy", viewing the market as "too bearish" on the tower outlook, as well as Tele2 OMXSTO:TEL2_A, for which it sees a good cash return story in 2026
** It raises Portugal's NOS EURONEXT:NOS to "neutral", as rival Digi BVB:DIGI makes slower-than-expected progress on fibre rollout
** The brokerage still sees good upside in Deutsche Telekom XETR:DTE, Orange EURONEXT:ORA, Vodafone LSE:VOD, Telia OMXSTO:TELIA and Bouygues EURONEXT:EN
RATING AND PT CHANGES:
COMPANY
RATING
OLD RATING
PT
OLD PT
Deutsche Telekom
Buy
-
EUR 43
EUR 40
Inwit
Buy
Neutral
EUR 11.8
EUR 11
Orange
Buy
-
EUR 18.9
EUR 16.7
Vodafone
Buy
-
130p
120p
Cellnex
Buy
Neutral
EUR 34
EUR 28.5
Bouygues
Buy
-
EUR 56
EUR 54
Telia
Buy
-
SEK 48
SEK 40
Tele2 B
Buy
Neutral
SEK 170
SEK 149
British Telecom LSE:70TD
Neutral
-
240p
220p
United Internet XETR:UTDI
Neutral
-
EUR 32
EUR 30
Proximus EURONEXT:PROX
Neutral
-
EUR 8.3
EUR 10.6
Zegona LSE:ZEG
Neutral
-
1,510p
1,340p
KPN EURONEXT:KPN
Neutral
-
EUR 4.4
EUR 3.9
Orange Belgium EURONEXT:OBEL
Neutral
-
EUR 21.6
EUR 19.8
Swisscom SIX:SCMN
Neutral
-
CHF 609
CHF 575
Elisa OMXHEX:ELISA
Neutral
-
EUR 40
EUR 45
Liberty Global A NASDAQ:LBTYA
Neutral
-
$11.6
$11.5
Telenor OSL:TEL
Neutral
-
NOK 150
NOK 170
OTE ATHEX:HTO
Neutral
-
EUR 17.2
EUR 16
Sunrise SIX:SUNN
Neutral
-
CHF 39
CHF 43
SES EURONEXT:SESG
Neutral
-
EUR 5.2
EUR 5
Telecom Italia Ords MIL:TIT
Neutral
-
EUR 0.45
EUR 0.42
NOS
Neutral
Sell
EUR 3.3
EUR 3.1
Telefonica
Sell
Neutral
EUR 2.9
EUR 4.4