Talktalk Telecom Share Discussion Threads

[ariane] 15/1/2020 12:08

Giulia Bottaro

11:35 Wed 15 Jan 2020

viewTalktalk Telecom Group PLC

Berenberg says TalkTalk "weak and not cheap" as it starts coverage with ‘sell’

The German bank slapped an 80p price target, a 32% discount to Tuesday’s closing share price

Talktalk Telecom Group PLC - Talktalk now covered by Berenberg as a ‘sell’

Talktalk Telecom Group PLC (LON:TALK) shares dipped on Wednesday after Berenberg initiated coverage on the telecoms and broadband provider with a ‘sell’ recommendation as it said the firm is “weak and not cheap”.

The German bank slapped an 80p price target on the FTSE 250-listed stock, a 32% discount to Tuesday’s closing price of 116.80p, sending the shares down 1.1% to 115.50p in late morning trading.
READ: TalkTalk swings back to profit after record quarter for fibre

In a note to clients, Berenberg's analysts noted that TalkTalk has been hit by declining market share, revenue and profits, while price competition keeps surging.

They pointed out that with "regulation shifting towards incentivising network investment, an area to which TalkTalk is less exposed, it is left in a challenging position."

Over its last nine preliminary results, the group has posted a total of £458mln in “one-off”; costs, stripped out from the “headline financials” on which it bases management bonuses, analysts said.

Therefore, statutory earnings per share (EPS) have on average been less than half of “headline EPS”.

The analysts said this has led to dividend overdistribution and higher debt - now at £781mln - having nearly doubled since the firm's demerger from Dixons Carphone PLC (LON:DC.) ten years ago.

To top it off, they added, TalkTalk has a track record of poor customer service as it serves 3mln of the country’s 32mln households.

The Berenberg analysts also pointed out that TalkTalk's board includes some directors classified as independent despite having worked for 20 years with the firm's founder and chairman Charles Dunstone.

However, the analysts noted, a brighter future might come from favourable regulatory decisions, while the imminent sale of network builder FibreNation could also create large opportunities.

Proactiveinvestors

[bookbroker] 15/1/2020 08:08

So what has happened to the apparent Fibrenation deal that was being lined up prior to the election, this is still performing like a dog, Que Passa on the other thread keeps pumping it, but he is on his own it seems!

[quepassa] 10/1/2020 08:20

This morning.

Barclays issue a broker note and REITERATE their OVERWEIGHT recommendation with unchanged TARGET PRICE of 150p.

Barclays see 25% UPSIDE to current share price

ALL IMO. DYOR.
QP

[quepassa] 09/1/2020 08:06

It would not surprise me if we heard further news about FibreNation in the n.t.d.f.

ALL IMO. DYOR.
QP

[1224saj] 27/12/2019 15:44

Tewkesbury, I don't think so. The reseller community don't trust their services. Too much choice out there, BT, Talktalk, Gamma and others

[tewkesbury] 27/12/2019 08:22

Get into micro cap Toople (Toop) headed by ex Talk Talk man Andy Hollingworth and a possible 200+ bagger.

[quepassa] 19/12/2019 14:56

Just to be absolutely crystal clear.

On the current basis a of circa £1.3billion market cap for TalkTalk, Tosca's 27.8% stake in TalkTalk is worth approx £360million.

£360 million.

That is an enormous investment to have in a single company and one which presumably carries for Tosca an expectation of a significantly incremental return on investment.

ALL IMO. DYOR.
QP

[quepassa] 19/12/2019 11:23

TOSCA have now UPPED their stake by ANOTHER 2.2% from 25.6% to an astonishing 27.8%.

Tosca are now fast getting very close to the vital 30% THRESHOLD under the CITY CODE TAKE-OVER rules.

Tosca have been resolute, relentless and patient in their stake-building of TalkTalk.

They are not doing it just for fun....look at their pattern of purchases over an extended period.

Is the pent-up pressure about to burst the TalkTalk dam wall?


ALL IMO. DYOR.
QP

[micos] 19/12/2019 10:44

Perhaps because Toscafund increased its holding by 2.2%

[harry_david] 19/12/2019 10:32

Deutsche appear to issue an awful lot of notes, what was the reason for this upgrade?

[quepassa] 19/12/2019 09:32

17th. December.

Deutsche issue a broker note and REITERATE their BUY recommendation and INCREASE their Price Target (from 184p) to 190p.

Clearly Deutsche are very bullish to INCREASE their Price target to 190p.

Deutsche see a noteworthy c 70% UPSIDE to current share price.

ALL IMO. DYOR.
QP

[rathean] 16/12/2019 09:39

If the CityFibre deal is to happen at all I would expect news by the end of the week imo dyor ofc.

[tewkesbury] 15/12/2019 11:34

Check out micro cap telecoms company Toople (TOOP) possible 200x bagger.

[rathean] 13/12/2019 18:58

A good day trade today but not completely out, prospect of a deal with CityFibre might see a more sustained rise imo dyor ofc.

[bookbroker] 13/12/2019 16:27

Another febrile performance from this stock, MMs don’t believe the story, big holders would likely not be depressing the price, on explanation, until Harrison does this deal or better leaves, then is going nowhere!

[1gw] 13/12/2019 08:50

Nice to see the bounce - there's still going to be a business in competitive broadband. Let's hope they can get the FibreNation deal over the line now and show us how good it is...

[tewkesbury] 13/12/2019 08:25

Micro cap telecoms company Toople (Toop) set to 100x bag under the business friendly Conservative government.

[quepassa] 13/12/2019 08:16

Halted late stage discussions/negotiations about FibreNation will likely and hopefully be resumed in short order.

ALL IMO. DYOR.
QP

[quepassa] 13/12/2019 08:13

The threat of nationalisation hanging over so many industry sectors, including telecoms, has gone.

Johnson's pledge to invest in and roll out gigabit fibre nationwide will be a major stimulus for broadband suppliers.

ALL IMO. DYOR.
QP

[bookbroker] 13/12/2019 07:58

Let’s hope this FibreNation transaction will now conclude, despite not seeing any terms, one has to assume they are favourable to Talk

[bookbroker] 12/12/2019 22:09

At the moment we are looking at a strong Tory majority, if this does not rise tomorrow, then nothing will bar a buyout!

[bookbroker] 12/12/2019 12:40

Needs shaking up here, otherwise Dunstone and Tosca going to see fortunes disappear, not sure how you invigorate a company that has been pillaged by shareholders in the past via ridiculous dividends, but the way it’s going is not looking promising. Tristram Harrison seems to think she knows what she is doing, but why follow Harding with another female in the hot seat, was that allow the influence of Dunstone to continue!

[bookbroker] 11/12/2019 20:02

What is going on in this company, you have the two principal shareholder’s buying stacks of shares recently, and maybe this company is most vulnerable to Labour policy, but I do not believe the recent falls have much to do with it, otherwise BT would be suffering likewise. Maybe the recent failure to achieve a Fibrenation deal has weakened the company, and a weaker conclusion to this transaction is on the cards. Taking the company private looks the best option!

[bookbroker] 11/12/2019 15:35

Tiny volume day!