Emmet Kelly, an analyst from Morgan Stanley, maintained the Hold rating on Cellnex Telecom SA (CLNXF – Research Report). The associated price target remains the same with €40.00.
Emmet Kelly has given his Hold rating due to a combination of factors impacting Cellnex Telecom SA’s financial outlook. Despite a strong performance in the fourth quarter of 2024, with EBITDAaL exceeding expectations and robust RLFCF figures, the company has lowered its RLFCF guidance for 2025. This adjustment is primarily attributed to the financial impacts of asset sales and de-consolidation in Austria and Ireland, which are expected to be free cash flow dilutive.
Additionally, the increased interest expenses related to incremental debt from mergers and acquisitions contribute to the cautious outlook. Although the Irish asset disposal is progressing as planned, these financial pressures suggest limited upside potential for the stock in the near term. Consequently, Kelly’s Hold rating reflects a balanced view of Cellnex’s strong recent performance against the challenges posed by its revised financial guidance.
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