Pareto believes that Telenor shares may fall 25% during the year.
Analysts are worried about the competition Telenor meets in Myanmar and here at home.
In 2017, the stock rose 35%, and ended the year at NOK 175.90. Additionally, NOK 7.80 was paid in dividends per share. Despite a good start in 2018, Pareto believes most of the upswing may be reduced during the course of the year, wrote Finansavisen newspaper.
So far this year, stock has risen by an additional 8%, reaching a peak of 191 kroner on Tuesday, but skepticism grew as we approach the quarterly presentation. Pareto operates on the basis of a price target of 143 kroner, 25% lower than today’s price.
In Norway, competition from Ice, which has its own network, is emerging as a challenge, while a new player is emerging in Myanmar during the first months of this year.
‘We expect them to start aggressively gaining momentum, and taking market share, and fear that the consensus does not reflect this risk,’ said the Pareto analyst.
© NTB Scanpix / Norway Today