Yet another difficult day in Piazza Affari for the TIM stock which dropped 8% to 0.1826 euros. These are the new historical lows for the stock, which since the beginning of the year marks a drop of over 57.5%.
Barclays analysts today cut their estimates for 2023 on the European telecommunications sector, while on TIM the recommendation fell to underweight with a target price of 0.15 euros. “Lower estimates are amplified by leverage and the decreased likelihood of restructuring-related value creation,” explains Barclays.
Barclays analysts believe that Telecom Italia’s landline restructuring and divestiture plans are now being challenged by the fact that the September 25 elections could see Giorgia Meloni’s Fratelli d’Italia affirmation. We see “little value of residual capital” in the current structure.