UBS said on Thursday that it increases its price target for Hellenic Telecoms (OTE) to EUR 9.5 from EUR 8.5, while it upgrades its recommendation to “buy”.
UBS comments that the appointment of new CEO Michael Tsamaz marks the beginning of a new focus on cost-cutting and expects further cost saving announcements over the next few months.
Following 2010 4th quarter reporting, UBS had lowered its group revenue forecasts by 2% but increased group EBITDA margin by 1pp in both 2011 and 2012.
In addition, Greek mobile competition is showing signs of stabilisationand and UBS believes 2010 should mark the nadir in terms of cash returns.
UBS comments that OTE chose not to announce a 2010 dividend and expects an announcement towards end of March.
UBS comments that the appointment of new CEO Michael Tsamaz marks the beginning of a new focus on cost-cutting and expects further cost saving announcements over the next few months.
Following 2010 4th quarter reporting, UBS had lowered its group revenue forecasts by 2% but increased group EBITDA margin by 1pp in both 2011 and 2012.
In addition, Greek mobile competition is showing signs of stabilisationand and UBS believes 2010 should mark the nadir in terms of cash returns.
UBS comments that OTE chose not to announce a 2010 dividend and expects an announcement towards end of March.
source: CAPITAL
