We leverage Barclays’ global Telecom coverage to highlight the most attractive investment opportunities. Our detailed bespoke market model assesses the relative regulatory, competitive and cashflow dynamics of over 40 Telecom markets. Given that valuation is currently relatively well correlated to real growth, we identify markets that are showing signs of inflection and therefore have scope for a rerating or derating. Our most preferred stocks globally are as follows: BT, Telenor, KPN, MTN, Liberty Global, Tim Brasil, Bezeq, AIS, HKT, PT Telkom and Bharti (all rated OW).
top picks. BT (£4.10 PT, 7% potential upside), Telenor (NOK165 PT, 13% upside), KPN (€2.60 PT, 2% upside), MTN (ZAR222 PT, +5% upside), Liberty Global ($96 PT, 7% upside), Tim Brasil ($27.0 PT, -2% upside), Bezeq (ILS6.50 PT, 12% upside), AIS (THB265 PT, 27% upside), HKT (HKD8.40 PT, 11% upside), PT Telkom (IDR2,500 PT, 20% upside) and Bharti (INR393 PT, 19% upside).