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Telecom (TIT.IT) closed the session on November 28 at 0.5698 euro, down 1.15%. The title has been penalized by the judgment of Goldman Sachs that adds to that of Moody's (TIM Telecom: Moody's will he manage to stop the rise?).
The ax of Goldman Sachs wins the title (Source: MilanoFinanza)
Despite measures taken by the government to encourage the creation of a single network, Goldman Sachs has lowered the "neutral purchase" rating with a target price of 0.80 to 0.60 euro to reflect higher costs society is facing. investments on 5G.
For the US commercial bank, the disputes between the shareholders and the new CEO, Luigi Gubitosi, imply uncertainties about the strategic line of the group, especially on the reduction of costs. However, an important element of the judgment is that, according to Goldman Sachs economists, Italy is close to recession. Among the positive factors, there is the possible "collaboration with Open Fiber" which would be offset by a slight increase in the cost of capital.
The possibility of a merger between the telecom network and Open Fiber, says the US investment bank, could lead to a revision of the valuation of the title with a target price double that of the current price.
The badessment of Mediobanca is completely opposite Securities. "As a reminder, our estimates suggest that 15 billion euros seem to be the fair value of the network.This would be compared to an implicit valuation of less than 7 billion euros for the NetCo at the current market price, a difference of 8 billion euros. almost equal to the current market capitalization of 12 billion.The balance of domestic business of the group would be negotiated at a discount of 50% compared to competitors, considering the multiple EV / EBITDA. .
Telecom Projection Analysis
A bullish projection is currently underway on the title, which allowed to reach the 2nd price target in the area of € 0.577. Given the difficulties to overcome this level, one can expect a decline until strong support in the area of 0.5271 €.
Two scenarios are possible for the future. Daily closing of more than 0.577 € and continuation of the upward trend up to the third price target in the area of 0.627 €. Distribution of support in the zone of 0.5271 € and bearish reversal.
Therefore, watch these two levels carefully.
Telecom: bullish projection in progress on the daily schedule
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