TELECOM ITALIA (N, TP EUR1.0): We update our forecasts for Telecom Italia following Q1 results, the new cost cutting targets of CEO Flavio Cattaneo, the launch of Enel Open Fibre and for recent TIM mobile price changes. We cut our TP to €1.0 to reflect the de-rating of the sector peer group. Q2 is likely to show an improvement in domestic EBITDA trends, with line loss slowing, and cost cutting accelerating. This may provide another short-term upswing in the TI share price.
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