Archived last week the appointment with the accounts of the first part of the year, there are still several unknowns about Tim’s future, such as that of the single network. At the moment the stock is moving up by 0.36%, thus finding itself at an altitude of 0.2208 euros, just above the recent ones historic lows of € 0.20.
In an interview with “Il Corriere della Sera” the CEO of Tim, Pietro Labriola, stressed the need to launch a plan to regain the confidence of the markets. Tim’s CEO initially took stock of the company’s situation in his first eight months of leadership at the company, focusing among others on the agreement for the single network and the acquisition of OI in Brazil. As analysts of Equity, Labriola is aware that the company must build a track record on the ability to achieve the targets of the plans, only in this way will it be able to see a revaluation of the stock price. With the release of the accounts, Tim has revised upwards some financial estimates for 2022, in particular on Ebitda 2022. In this sense, Labriola recalls that the revision derives exclusively from the trend of the domestic market.
Single network chapter
On the much discussed issue of the single network, Labriola instead reiterated that the option that creates the most value is l‘agreement with Open Fiber, but that in any case it is necessary to have a plan B, or “a separate network with a financial partner”. In this regard, Labriola believes that the ongoing government crisis does not change the common vision on the opportunities of the national project, even if there are many questions and critical issues. The CEO sees in Enterprise, the division dedicated to large companies and the PA, as the flagship of the group and this thanks to the development of Cloud, cybersecurity, IoT. Furthermore, the interview shows the intention to stabilize and make the Consumer division a reference for the market, on which the pressure is strong due to the price war.
Finally, on the future Labriola thinks that Tim will no longer be a vertically integrated company but will focus on certain business models. According to Equita, which maintains the Hold rating (“keep in portfolio”), with a target price of € 0.39, for Tim the most strategically important element remains the single network plan, as it enhances the network asset and allows ” restore a solid financial position “. Unlike Labriola, Equita’s analysts see uncertainties linked to the government crisis, even if at the moment they have not found “positions clearly adverse to the project”.
For the big Italian telecommunications company the accounts on first half of 2022 which show, despite the negative result of 483 million euros, revenues and Ebitda better than the consensus and better than in the first half of 2021. However, the company remains heavily indebted and at the end of June the net financial debt rose to 24.65 billion euro, although the company specifies that this increase is due to the acquisition of OI’s mobile business in Brazil.
The technical point about Tim
Complex graphic framework for Tim. Despite the continuation today of the rebound initiated by the all-time low marked on July 27, the trend on the stock remains strongly bearish. In particular, Tim recorded a new minimum at € 0.2015 from which he scored a rebound of 9%. Now the prices are around € 0.221 and in the event of continuation of the weakness, the collapse of the support a 0,213 can quickly bring Tim to the psychological level of 0,20 euro. On the contrary, only the upward overshoot with increasing volumes of static resistance at 0.2357 (previous historical lows in March), may offer the first signs of strength on the stock.
The downward trend in prices is also evident by looking at the trendline built from November 2021 and confirmed in February of this year; but also the position of prices below moving averages main (50-200 periods). From the point of the algorithmic analysis, signs of improvement emerge from the direction indicator parabolic sar which is in the long position and by the momentum oscillator Rsi which is heading towards the overbought area.