Swedish telecom operator Telia reported a smaller-than-expected rise in fourth-quarter adjusted core earnings on Thursday, but confirmed its outlook for 2025.
Telia has undergone significant turnaround efforts, showing strong fundamentals, improved EBITDA, and a promising pathway to achieve 10B SEK annual FCF by 2027. My large position in Telia, bought below 28 SEK/share, yields over 7% quarterly, reflecting its strong dividend and upside potential. Telia's valuation remains attractive, with a price target of 35 SEK/share, making it a "BUY" at current levels, especially below 25 SEK.
The Swedish telecommunications operator said it expected stronger growth momentum in the fourth quarter of the year and raised its guidance as it reported a slight beat on adjusted underlying earnings for the third quarter.
Swedish telecom operator Telia said on Wednesday it was looking to cut around 3,000 jobs, part of a plan to cut annual costs by 2.6 billion Swedish crowns ($252.65 million).
Telia's 2Q24 update shows momentum for recovery and a good upside for 2024-2025. Telia's financial profile remains strong with operational traction, revenue growth, and reduced leverage. Despite risks related to valuation, Telia is considered a "BUY" with a price target of 35 SEK.