Eurobank Equities upgraded the target price for the OTE title, emphasizing the strong size of the Organization and its outperformance in relation to both domestic non-bank blue chips and the wider telecommunications industry in Europe.
In particular, the stock exchange points out in a report that at a time when estimates for OTE’s returns to its shareholders were slightly downgraded, OTE’s share yielded 2% on an annual basis when the European telecommunications sector moved to -1% .
At the same time, Eurobank Equities sees the possibility of creating additional value through further utilization of assets at the level of infrastructure available to OTE, while underlining the fiber optic interconnection of another 3 million houses by 2027 planned by the Organization, a branch which is estimated to will contribute 20% to OTE EBIDTA until 2027.
In this context, the stock exchange upgrades its valuation for OTE EBITDA by 2-3% in the period 2022-2024, with the return of funds to its shareholders estimated at 500 to 600 million euros (yield 7-8%) .
For OTE’s share, Eurobank Equities now sets the target price at 17.1 euros from the previous 16, while maintaining the hold recommendation.
Source: Capital
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