JPM cuts Cellnex to Neutral on risks from asset sales, mobile mergers

Published 29/07/2025, 14:46
© Reuters.

Investing.com -- JP Morgan downgraded Cellnex to Neutral from Overweight, warning that upcoming tower sales may raise less than expected and that mobile network consolidation in Europe could pressure the company’s long-term contracts.

The brokerage lowered its price target to €44.50 from €53.50 given reduced forecasts for revenue and earnings, as well as concerns that higher interest rates and limited short-term cash flow will weigh on the stock.

Cellnex shares have risen 6% this year, trailing a 14% gain in the broader European telecom sector and a stronger rally among U.S. tower companies.


Cellnex has been seeking buyers for its Swiss tower assets and French data centres.

But JP Morgan said recent commentary raises doubts about whether the company can meet its valuation goals, particularly the €2 billion it is targeting for the Swiss unit.

Investors are also growing cautious about the impact of mobile operator mergers across Europe, the brokerage said.

Although Cellnex’s tower revenues are largely secured under long-term contracts, JP Morgan said the risk of renegotiation may lead investors to assign a lower valuation to the stock.

For the second quarter, the bank expects slight earnings misses across key metrics including EBITDA after lease costs.

While Cellnex still offers strong medium-term growth, JP Morgan said other telecom stocks such as Orange and BT are better positioned to benefit from industry trends over the next year.

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