Macquarie expects dividend cuts at Vodafone and Swisscom
Investors in Vodafone and Swisscom should expect to see dividend cuts, analysts at Macquarie said.
BT Group
144.80p
17:15 23/12/24
CAC 40
7,272.32
17:00 23/12/24
Cboe CH 20
1,225.43
16:58 23/12/24
Cboe Europe All Companies
51.19
11:45 01/12/20
Cboe Europe All Companies ex UK
19,919.43
11:45 01/12/20
Cboe Europe Telecommunications Sector
8,358.03
11:10 01/12/20
CityFibre Infrastructure Holdings
80.90p
16:55 20/06/18
DJ EURO STOXX 50
4,852.93
23:59 23/12/24
Fixed Line Telecommunications
1,957.13
17:09 23/12/24
FTSE 100
8,102.72
17:14 23/12/24
FTSE 350
4,471.06
17:09 23/12/24
FTSE AIM 100
3,442.83
16:44 23/12/24
FTSE AIM 50
3,871.96
16:44 23/12/24
FTSE AIM All-Share
712.44
16:50 23/12/24
FTSE All-Share
4,428.73
16:44 23/12/24
Mobile Telecommunications
1,957.13
16:59 24/01/22
Orange.
€9.48
16:39 23/12/24
Swisscom Ag
Fr.501.50
16:20 23/12/24
Vodafone Group
66.48p
16:40 23/12/24
Overall, their Alpha Model was "increasingly constructive" on the European Union telecoms space, they said in a research note dated published on Tuesday but dated 5 February.
In a nutshell, according to the analysts, outside of BT Group and Orange dividend growth rates in the sector were "overstated".
There also remained a long-term risk to consensus expectations for free cash flows, they said.
The main drivers of their investment thesis for the sector were: firms' difficulty in growing revenues due to a cocktail of negative factors including price competition, regulators, politicians, consumer behaviour, the shift towards 'bundles', continued string growth in consumer demand for speed and reliability and sustained high levels of capital expenditure.
In the same note, Macquarie reiterated its 'outperform' recommendations for shares of Orange and Telecom Italia.
The Australian broker also had BT Group (target price: 256p) and CityFibre at 'outperform' (target price: 49p) and Vodafone at 'underperform' (target price: 214p).