European telcos remain 'investable' but need a push, NewStreet Research says

About this update from Tele2 Ab Class A

** 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:ENRATING AND PT CHANGES:COMPANYRATINGOLD RATINGPTOLD PTDeutsche TelekomBuy-EUR 43EUR 40InwitBuyNeutralEUR 11.8EUR 11OrangeBuy-EUR 18.9EUR 16.7VodafoneBuy-130p120pCellnexBuyNeutralEUR 34EUR 28.5BouyguesBuy-EUR 56EUR 54TeliaBuy-SEK 48SEK 40Tele2 BBuyNeutralSEK 170SEK 149British Telecom LSE:70TD Neutral-240p220pUnited Internet XETR:UTDI Neutral-EUR 32EUR 30Proximus EURONEXT:PROX Neutral-EUR 8.3EUR 10.6Zegona LSE:ZEG Neutral-1,510p1,340pKPN EURONEXT:KPN Neutral-EUR 4.4EUR 3.9Orange Belgium EURONEXT:OBEL Neutral-EUR 21.6EUR 19.8Swisscom SIX:SCMN Neutral-CHF 609CHF 575Elisa OMXHEX:ELISA Neutral-EUR 40EUR 45Liberty Global A NASDAQ:LBTYA Neutral-$11.6$11.5Telenor OSL:TEL Neutral-NOK 150NOK 170OTE ATHEX:HTO Neutral-EUR 17.2EUR 16Sunrise SIX:SUNN Neutral-CHF 39CHF 43SES EURONEXT:SESG Neutral-EUR 5.2EUR 5Telecom Italia Ords MIL:TIT Neutral-EUR 0.45EUR 0.42NOS NeutralSellEUR 3.3EUR 3.1TelefonicaSellNeutralEUR 2.9EUR 4.4

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