Telia Co AB: A Mixed Bag of Results

Telia Co AB, a Stockholm-based communication service provider, has been given a fair valuation by analysts, but don’t be fooled - the company’s financials are a mixed bag. According to Inderes, Telia is expected to report a slight increase in revenue and improved margins due to cost-cutting measures. However, this growth is not without its caveats.

• Revenue growth is expected to be sluggish in the second quarter, a stark contrast to the rest of the year.
• Profit growth is expected to be slower in the second quarter, a clear indication that Telia’s financials are not as robust as they seem.

Despite these concerns, Inderes has maintained its recommendation to reduce the stock and set a price target of 34 kronor. But what does this really mean? It means that even the most optimistic analysts are not convinced that Telia’s stock is a good investment.

Meanwhile, Telia is expected to report a just-eat EBITDA of 7.8 billion kronor in the second quarter, slightly lower than last year’s result. This is a clear indication that the company’s financials are not as strong as they once were.

• Morningstar has also upgraded its rating for Telia to hold (sell), a clear indication that the company’s stock is not a good investment.
• The company’s stock price has been relatively stable, with a slight increase in the latest quarter. But don’t be fooled - this stability is a result of a lack of growth, not a sign of strength.

In conclusion, Telia Co AB’s financials are a mixed bag. While the company’s revenue and margins may be improving, its profit growth is expected to be sluggish. With a price target of 34 kronor and a hold (sell) rating from Morningstar, it’s clear that Telia’s stock is not a good investment.