Citi envisages a risk that the decline in core earnings accelerates as industry growth in both mobile and broadband matures.
Core earnings per share is expected to fall by an estimated -43% from FY17 to the end of the NBN roll-out in FY21.
Target price declines to $3.25 from $3.35. Sell rating retained.
Sector: Telecommunication Services.
Target price is $3.25.Current Price is $3.55. Difference: ($0.30) – (brackets indicate current price is over target). If TLS meets the Citi target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).