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Investing.com - Berenberg initiated coverage on Sunrise Communications (SWX:SUNN) with a Hold rating and a price target of CHF49.00 on Thursday.
The price target suggests approximately 10% upside potential for the Swiss telecommunications company, according to the research firm’s analysis. Berenberg based its valuation on a discounted cash flow (DCF) model.
The research firm noted that Swiss market service revenues have been under pressure for over a year due to two main factors. First, consumer spending habits have shown sensitivity to price, and second, business-to-consumer mobile competition has intensified from low-cost sub-brands and mobile virtual network operators (MVNOs).
Berenberg indicated it would consider a more positive stance on Sunrise shares if the growth outlook for the Swiss market showed signs of returning to sustainable service revenue growth.
The Hold rating reflects Berenberg’s neutral position on Sunrise Communications’ near-term prospects while acknowledging moderate upside potential based on current market conditions.
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