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New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

Thematic (Sector/Industry)

New Street Research attended this year's Mobile World Congress in Barcelona recently. While the move to 5G will bring huge increases in localized wireless capacity, the transition around 2020 to 5G looks increasingly likely to be smooth for many operators, with little impact on capex or revenue trajectories. 5G does not change the key economics of network densification. Where these are good, 5G will thrive. Where they are poor, 5G deployment will be slower. Only in markets with strong asymmetry…

New Street Research attended this year's Mobile World Congress in Barcelona recently. While the move to 5G will bring huge increases in localized wireless capacity, the transition around 2020 to 5G looks increasingly likely to be smooth for many operators, with little impact on capex or revenue trajectories. 5G does not change the key economics of network densification. Where these are good, 5G will thrive. Where they are poor, 5G deployment will be slower. Only in markets with strong asymmetry…

Report from Mobile World Congress: The Transition to 5G Comes into Focus.

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Fears of the impact of Britain's exit from the European Union have pushed down the prices of most European communication stocks. We think this is an overreaction as we view telecom as a sector somewhat immune to geopolitical changes. In our view, Brexit will have no effect on cross-border transfers of voice or data as mobile termination rates for voice have already been reduced to negligible levels and for data have been cut in half and will be down to local roaming rates by the end of 2017.Within the U.K., we think BT will likely be the most affected as the majority of its revenue is from the U.K. Its only non-U.K. revenue is from its global services division. However, we think what losses do accrue will be offset by stronger revenue from the global services division as revenue from other currencies is translated into a weaker pound.Analysts: Allan C. Nichols, CFA

Fears of the impact of Britain's exit from the European Union have pushed down the prices of most European communication stocks. We think this is an overreaction as we view telecom as a sector somewhat immune to geopolitical changes. In our view, Brexit will have no effect on cross-border transfers of voice or data as mobile termination rates for voice have already been reduced to negligible levels and for data have been cut in half and will be down to local roaming rates by the end of 2017.Within the U.K., we think BT will likely be the most affected as the majority of its revenue is from the U.K. Its only non-U.K. revenue is from its global services division. However, we think what losses do accrue will be offset by stronger revenue from the global services division as revenue from other currencies is translated into a weaker pound.Analysts: Allan C. Nichols, CFA

We Believe Brexit Fears Have Unfairly Driven Down Shares of Most European Communication Stocks

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>LVC sits a blocking stake ahead of <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a>'s shareholder vote on the 22nd Janaury. I've yet to see a solid rationality why they would block.</li>
<li>
<a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a>extends the closing date to the 24th January. Shares held plus tendering is currently 86.18%. This is done.</li>
<li>
<a href="https://www.smartkarma.com/entities/kokusai-electric-corp" target="_blank" data-smartkarma-citation="entities:40152:1" rel="noopener">Kokusai Electric (6525 JP)</a> was IPOed in September 2023. Lockup expiry is next week, and there is a likely large index event in ~10 weeks</li>
</ul>


LVC sits a blocking stake ahead of Shanghai Henlius Biotech (2696 HK)'s shareholder vote on the 22nd Janaury. I've yet to see a solid rationality why they would block.

Malaysia Airports Holdings (MAHB MK)extends the closing date to the 24th January. Shares held plus tendering is currently 86.18%. This is done.

Kokusai Electric (6525 JP) was IPOed in September 2023. Lockup expiry is next week, and there is a likely large index event in ~10 weeks


Last Week In Event SPACE: Shanghai Henlius, Malaysia Airports, Kokusai Electric, Smart Share

European Event-Driven Analyst

Jesus Rodriguez Aguilar

<ul>
<li>Share Repurchase Programme: EUR 800M buyback (4% of market cap) aims to cancel shares, boosting EPS and shareholder value, funded by non-core asset sales.</li>
<li>Valuation Insight: Current market price significantly undervalued versus EUR 42.68 consensus target and EUR 43.80 DCF valuation, offering substantial upside potential.</li>
<li>Strategic Alignment: Ensures financial discipline (DFN/EBITDA 5–6x target by 2025/2026) while enhancing returns via repurchase programme and increased dividend payouts from 2026 onward.</li>
</ul>


Share Repurchase Programme: EUR 800M buyback (4% of market cap) aims to cancel shares, boosting EPS and shareholder value, funded by non-core asset sales.
Valuation Insight: Current market price significantly undervalued versus EUR 42.68 consensus target and EUR 43.80 DCF valuation, offering substantial upside potential.
Strategic Alignment: Ensures financial discipline (DFN/EBITDA 5–6x target by 2025/2026) while enhancing returns via repurchase programme and increased dividend payouts from 2026 onward.


Cellnex Share Repurchase Programme: Valuation and Potential Impact on Stock Price

<ul>
<li>Cellnex plans to sell its 72% Swiss subsidiary stake, potentially generating €1.1 billion, as part of a broader strategy to divest non-core assets and reduce debt.</li>
<li>Recent divestments in Austria, Ireland, and Scandinavia enable Cellnex to focus on strategic markets, targeting a debt-to-EBITDA ratio of 5-6x by 2025/2026.</li>
<li>Optimizing its portfolio, Cellnex aims to boost shareholder returns via buybacks, higher dividends (which should attract income funds), and leveraging its strong market position in core European markets.</li>
</ul>


Cellnex plans to sell its 72% Swiss subsidiary stake, potentially generating €1.1 billion, as part of a broader strategy to divest non-core assets and reduce debt.
Recent divestments in Austria, Ireland, and Scandinavia enable Cellnex to focus on strategic markets, targeting a debt-to-EBITDA ratio of 5-6x by 2025/2026.
Optimizing its portfolio, Cellnex aims to boost shareholder returns via buybacks, higher dividends (which should attract income funds), and leveraging its strong market position in core European markets.


Cellnex's Strategic Divestment of Swiss Subsidiary

Spain

Cellnex Telecom S.A.U. is an independent operator of wireless telecommunications infrastructure and broadcast infrastructure. The Company's sites are located in Spain and Italy.

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Cellnex Telecom Sau (CLNX SM)

Report from Mobile World Congress: The Transition to 5G Comes into Focus.

New Street Research attended this year's Mobile World Congress in Barcelona recently. While the move to 5G will bring huge increases in localized...

New Street Research

We Believe Brexit Fears Have Unfairly Driven Down Shares of Most European Communication Stocks

Fears of the impact of Britain's exit from the European Union have pushed down the prices of most European communication stocks. We think this is...

Morningstar, Inc.

Cellnex's Strategic Divestment of Swiss Subsidiary

Cellnex plans to sell Swiss subsidiary stake to generate €1.1 billion, part of strategy to divest non-core assets and reduce debt, focusing on key...

Jesus Rodriguez Aguilar

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52-week Range

Market Cap (USDm)

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Report from Mobile World Congress: The Transition to 5G Comes into Focus.

New Street Research attended this year's Mobile World Congress in Barcelona recently. While the move to 5G will bring huge increases in localized...

New Street Research

We Believe Brexit Fears Have Unfairly Driven Down Shares of Most European Communication Stocks

Fears of the impact of Britain's exit from the European Union have pushed down the prices of most European communication stocks. We think this is...

Morningstar, Inc.

Last Week In Event SPACE: Shanghai Henlius, Malaysia Airports, Kokusai Electric, Smart Share

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Cellnex Share Repurchase Programme: Valuation and Potential Impact on Stock Price

​Company initiates EUR 800M buyback to boost EPS and shareholder value, undervalued stock offers substantial upside potential, financial discipline...

Jesus Rodriguez Aguilar

Cellnex's Strategic Divestment of Swiss Subsidiary

​Cellnex plans to sell Swiss subsidiary stake to generate €1.1 billion, part of strategy to divest non-core assets and reduce debt, focusing on key...

Jesus Rodriguez Aguilar

Company initiates EUR 800M buyback to boost EPS and shareholder value, undervalued stock offers substantial upside potential, financial discipline...

Cellnex plans to sell Swiss subsidiary stake to generate €1.1 billion, part of strategy to divest non-core assets and reduce debt, focusing on key...