Berenberg more than halves Telecom Plus target price

(Sharecast News) - Analysts at Berenberg slashed their target price for Telecom Plus to 1,200p from 2,600p, after updating forecasts to reflect the firm's new fiveyear plan and heavierthanexpected investment programme.

Berenberg said Telecom Plus' FY26 results contained no major surprises, with most numbers preguided in April, and shifted its focus instead to the group's strategic pivot toward accelerating multiservice customer growth.

The German bank stated management was prioritising highervalue, longerlifetime users as it moves to defend its competitive position against aggressive fixedprice discounting in the energy and broadband markets, with early indications pointing to encouraging doubledigit growth in multiservice customers.

Customer numbers rose 23.3% year-on-year to 1.43m in FY26, but intense competition meant service growth lagged and churn edged up to 14.2%. Adjusted pretax profits of �132.2m landed at the bottom of guidance.

Under the new plan, Telecom Plus aims to double its multiservice base to more than 1m by FY31, supported by �55m of annual investment across pricing, partner expansion, brand building and AI. Berenberg highlighted that multiservice customers generate 1.8x the annual contribution and have 1.7x the lifetime of singleservice users.

However, Berenberg said the frontloaded spend results in a sharp 40% downgrade to FY27 adjusted PBT guidance, now �80m to �90m. Berenberg said it remains positive on the longterm opportunity and reiterated its 'buy' rating on the stock, but stressed that execution against the plan would be key to shareprice performance.

Reporting by Iain Gilbert at Sharecast.com