Telecom Italia: An Unstable Market And Poor Fundamentals Means 'No Go'

2025-05-20 15:35:32 ET

Summary

• I rate Telecom Italia S.p.A. a SELL, citing poor fundamentals, lack of vertical integration, and a broken Italian telco market.
• Despite recent debt reduction, TIM's loss of proprietary infrastructure and continued customer churn make its long-term prospects unattractive.
• The company offers no dividend, is junk-rated, and trades above my fair value estimate of €0.2/share, making it overvalued.
• I see no realistic upside; I would take profits if held and avoid TIM until significant market or company improvements emerge.

Dear readers/followers,

I tend to take coverage suggestions from my readers and from people contacting me. One suggestion I've had, from someone living in the nation, is to look at Telecom Italia, or as it's known since 2016, TIM S.p.A. I tend to be positive even about somewhat more volatile or emerging telcos, but when it comes to the Italian market and telecommunications, I've mostly stayed out until now....

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