Analysts of the Concorde Securities brokerage house, based in Budapest, reiterate their buy recommendation and maintain the target price of RON 84 (versus RON 66.4 current market price) for the shares of the telecommunications operator Digi Communications (BVB: DIGI).

The potential return thus amounts to 26.5%. 

"Key performance indicators are largely in line with our expectations," the research report issued by Concorde reads. 

The expected cash flow from the sale of the Spanish FTTH network increased DIGI's liquidity for the rest of the year and contributed to debt repayment and increased CAPEX levels. 

In the coming years, funding will not be an issue, as maturing loans will amount to EUR 189 million and EUR 173 million in 2025 and 2026, respectively. 

"In our view, cash generated from operations will be sufficient to cover maturing loans. The dynamics of RGU (revenue generating units.) and ARPU (average revenue per user) follow the basic strategy and are largely in line with our forecasts," write Concorde analysts. 

Digi reported that for the first nine months of 2024, revenues increased by 14.2% year-on-year, mainly due to the Spanish segment, where revenues increased by 22.1% year-on-year.

iulian@romania-insider.com

(Photo source: Digi)