Telenor stock rated Hold by Berenberg on strong growth, Nordic risks

Published 26/06/2025, 12:40
Telenor stock rated Hold by Berenberg on strong growth, Nordic risks

Investing.com - Berenberg has reinstated coverage on Telenor ASA (OB:TEL) (OTC:TELNY) with a Hold rating and a price target of NOK138.00, citing strong current growth that may face headwinds.

The telecommunications company has demonstrated robust performance with Nordic growth of 3% in the first quarter of 2025, primarily driven by operations in Finland and Denmark as Sweden and Norway begin to show signs of slowing down.

Telenor’s cost-cutting measures have yielded positive results, with Telenor Nordics posting EBITDA growth of 6% in the fourth quarter of 2024 and 7.5% in the first quarter of 2025, according to Berenberg’s analysis.

The research firm projects that these operating cost reductions should continue to boost EBITDA growth throughout the remainder of the year, with Berenberg forecasting Nordic EBITDA growth of 4.9% for fiscal year 2025.

Despite the strong performance, Berenberg notes potential challenges ahead, including Asian foreign exchange impacts and risks in the Norwegian market, with the firm’s analysis falling "just short of NOK13bn cash flow guidance and dividend cover."

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