Eltel operates in the telecommunications and electricity industries and offers services in infrastructure for networks and electricity. The company's services include installation, maintenance and project management for telecommunications and electricity networks. The business is aimed at companies and public institutions in Europe. Eltel was founded in 2001 and is headquartered in Stockholm, Sweden.
* Q2e: big y-o-y earnings improvement * Raised EBITA driven by increasing emerging service sales * Share trading at 10x '26e EV/EBITA, goes to 7x in '28e Q2e: significant y-o-y EBITA improvement We expect Eltel to report Q2 net sales of EUR 211m, up ...
Following the strong post-Q1 share price surge, however, we believe the valuation has run too far, and the risk-adjusted return is no longer attractive at current levels.
In our view, the agreement improves the visibility of our medium-term forecasts for the Swedish unit and puts upward pressure on our estimates, though we await the final contract signing before revising them.
Eltel's Q1'26 report came in well above our estimates on both top and bottom line, demonstrating that the turnaround trajectory not only remains intact, but is progressing faster than we projected.
* Strong growth and continued margin improvement * We raise '26e EBITA by 9%, '27e-'28e by 6% each * 9x '26e EV/EBITA, 6-11% '26e-'27e lease-adj. FCF yields An impressive showing given negative seasonality Eltel reported Q1 net sales of EUR 191m (+7%...
We view the agreement positively as it builds upon an existing strategic relationship and provides increased visibility for Eltel’s Finnish operations through 2029.
* Q1e: a seasonally small quarter, but positive y-o-y trend * We make only minor estimate revisions * Share trading at 10-8x '26e-'27e EV/EBITA Q1e: seasonally small, but y-o-y improvement expected We expect Eltel to report Q1 net sales of EUR 178m, ...
