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Prices & Quotes - UK Markets - TalkTalk Telecom Group (TALK)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 95.80p
Change Today:
-0.050p
Market Cap:
1,097.87m
Sector:
Fixed Line Telecommunications

Berenberg initiates coverage on Talk Talk with damning report, starts at 'sell'

By Iain Gilbert

Date: Wednesday 15 Jan 2020

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg initiated coverage on telecommunications provider TalkTalk at 'sell' on Wednesday, calling the firm "weak" and "not cheap".
Berenberg said the bulk of TalkTalk's value lied in its roughly three million retail relationships with UK households but noted that over the last decade, the group had suffered declining market share, revenue and profits, while its net debt increased due to dividend overdistribution.

Driving the latter was the company's long-running habit of stripping 'one-off' costs from its headline financials, on which management bonuses are based, resulting in a wide gap versus statutory profits.

With the competitive environment worsening in UK telecoms and regulation shifting towards incentivising network investment, an area to which TalkTalk is less exposed, Berenberg said the firm was left in "a challenging position".

And in fixed-line, regulation was increasing consumer power, even as Vodafone disrupted the low-end and broadband penetration was maturing.

At the same time, Berenberg said the competitive environment was deteriorating, with increasing price competition.

"TalkTalk has too much debt, lacks scale, has a track record of poor customer service, and has incurred significant recurring 'one-offs' in the last decade," said Berenberg, which issued the firm with an 80p target price," it said.

The carrier's net debt was 3.3 times' its earnings before interest, taxes, depreciation and amortisation.

"Given these issues, we do not feel that valuation multiples broadly comparable with the sector are deserved," Berenberg continued.

"Finally, we believe any minority investor should take the time to look at TalkTalk's board structure, which includes some directors classified as independent despite having worked for 20 years with founder and chairman Charles Dunstone."

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TALK Market Data

Currency UK Pounds
Price 95.80p
Change Today -0.050p
52 Week High 122.10p
52 Week Low 69.50p
Volume 899,989
Shares Issued 1,146.00m
Market Cap 1,097.87m

Performance Indicators

Compare performance with the sector and the market.

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Price Trend
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Income
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Growth
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P/E
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Dividend Yield
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EPS Growth
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Operating Margin
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What The Brokers Say

Strong Buy 1
Buy 0
Neutral 4
Sell 1
Strong Sell 4
Total 10
sell
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

TALK Dividends

  Latest Previous
  Final Interim
Ex-Div 09-Jul-20 28-Nov-19
Paid 07-Aug-20 16-Dec-19
Amount 1.50p 1.00p

Trades for 04-Dec-2020

Time Volume / Share Price
16:35 356,206 @ 95.80p
16:29 225 @ 95.80p
16:29 214 @ 95.80p
16:29 438 @ 95.80p
16:29 575 @ 95.80p

TALK Key Personnel

CEO Tristia Harrison