Netel

Netel

In this equity research report, analysts Tea Nedelkovska and Krystian Segura take a closer look at Netel, a
Swedish telecom, power and public infrastructure services provider. With an asset-light business model and
capitalizing on the growing demand for 5G connectivity and cleaner energy sources, the analysts project
Netel’s topline to grow at a 6.2% CAGR through 2031E. Although recent integration costs have caused a
decline in Netel’s profitability, the absorption of these acquisition-related expenses is expected to drive a
2.5 percentage point expansion in EBIT margins by 2026E. The target price of SEK 23.9, derived from an
equally weighted DCF and peer valuation, implies a potential upside of 82.4%.

Investment Highlights
● Fiber rollout and power infrastructure upgrades to boost revenue
● Rippling effects ensure stable long-term growth
● Integration cost absorption to drive margin expansion

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