Differentiated global TMT & Internet Research

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

Equity Bottom-Up

We have spoken about likely consolidation in the Indian mobile market in the past, given the massive sums that need to be spent to stay relevant in a data world. Already, we have seen a number of smaller players sell/merge their companies/spectrum holdings. We discussed some of this in the note <a href="https://www.smartkarma.com/insights/bharti-jio-worries-overdone-recovery-continues" target="_blank" data-smartkarma-citation="insights:5285">Bharti: Jio Worries Overdone. Recovery Continues</a>. Our core thesis is that ROCE in most emerging markets is bottoming out and shareholders should benefit. We accept that consolidation in Europe has not…

We have spoken about likely consolidation in the Indian mobile market in the past, given the massive sums that need to be spent to stay relevant in a data world. Already, we have seen a number of smaller players sell/merge their companies/spectrum holdings. We discussed some of this in the note Bharti: Jio Worries Overdone. Recovery Continues. Our core thesis is that ROCE in most emerging markets is bottoming out and shareholders should benefit. We accept that consolidation in Europe has not…

IDEA/Vodafone Courtship: A New No1 in India? Indian Telecom Consolidation Moving Forward.

Jio has built a huge amount of wireless capacity in an Indian context, but India is a very large country, with thin incumbent networks. If Jio wants to deliver and retain a good customer experience they can probably only accommodate 50-80m subscribers, using 2.5-4GB/month of data with current capacity. This is insufficient to derail the improving ROIC picture for an industry that is rapidly consolidating.<a href="https://www.smartkarma.com/entities/953" target="_blank" data-smartkarma-citation="entities:953:1">Bharti (BHARTI IN)</a> is by far the best-positioned operator among the incumbents and we have raised our target price for Bharti to INR615 while downgrading the target price for <a href="https://www.smartkarma.com/entities/15678" target="_blank" data-smartkarma-citation="entities:15678:1">IDEA (IDEA IN)</a> and <a href="https://www.smartkarma.com/entities/5197" target="_blank" data-smartkarma-citation="entities:5197:1">RCOM (RCOM IN)</a> to INR130 and INR55 respectively. We have also cut our recommendation on RCOM to Neutral from Buy.

Jio has built a huge amount of wireless capacity in an Indian context, but India is a very large country, with thin incumbent networks. If Jio wants to deliver and retain a good customer experience they can probably only accommodate 50-80m subscribers, using 2.5-4GB/month of data with current capacity. This is insufficient to derail the improving ROIC picture for an industry that is rapidly consolidating.Bharti (BHARTI IN) is by far the best-positioned operator among the incumbents and we have raised our target price for Bharti to INR615 while downgrading the target price for IDEA (IDEA IN) and RCOM (RCOM IN) to INR130 and INR55 respectively. We have also cut our recommendation on RCOM to Neutral from Buy.

Bharti: Jio Worries Overdone. Recovery Continues

Event-Driven

We do not follow the HK listing but do look at <a href="https://www.smartkarma.com/entities/132" target="_blank" data-smartkarma-citation="entities:132:1">CK Hutchison (1 HK)</a> in Europe as part of the competitive landscape. For a broader look at the recent results see <a href="https://www.smartkarma.com/insights/building-on-its-global-ports-infrastructure-retail-and-telco-operations" target="_blank" data-smartkarma-citation="insights:5252">Building on Its Global Ports,infrastructure, Retail, and Telco Operations.</a> Hutchison reported mixed 1H16 telecoms results as revenue growth across the majority of their markets has slowed, but Ebitda growth remained strong due to continued good cost management. We continue to view the challengers in Europe as well placed to compete, and…

We do not follow the HK listing but do look at CK Hutchison (1 HK) in Europe as part of the competitive landscape. For a broader look at the recent results see Building on Its Global Ports,infrastructure, Retail, and Telco Operations. Hutchison reported mixed 1H16 telecoms results as revenue growth across the majority of their markets has slowed, but Ebitda growth remained strong due to continued good cost management. We continue to view the challengers in Europe as well placed to compete, and…

Hutchison 1H16 Mixed Results. Strong Cost Management

Global Asset Allocation, Politics & Governance, Ecstrat

John-Paul Smith

Global Asset Allocation, Politics & Governance

Ecstrat

Ecstrat is a consultancy advising on asset allocation between global equity markets, with a focus on the intersection of governments, geopolitics, governance and markets.
 
Over the past few years and more especially since the Great Financial Crisis (GFC), investors have become more focused on short-term market movements and real-time returns and have consequently neglected the analysis of the underlying structural themes that underpin longer term performance.
​
More specifically we believe that the evolution of governance-based relationships between investors, controlling shareholders, labour and the state is one of the primary determinants of both relative and absolute performance between individual equity markets.
 
We will endeavour to provide investors with some of the context surrounding governance-related issues which encompass many different disciplines including history, economics and political science, as well as the financial metrics which are the most obvious manifestation of the structural characteristics of each market.
 
We will pay particular attention to the shifts and potential inflection points for governance in individual markets as these are often the best lead indicators for both economic and market performance.

Cross Asset Strategy

In this brief piece we take a considered stance on the likelihood of Brexit actually proceeding in the wake of June’s referendum and examine some of the strategic implications for equity investors in terms of the potential shifts in sovereign and corporate governance.

In this brief piece we take a considered stance on the likelihood of Brexit actually proceeding in the wake of June’s referendum and examine some of the strategic implications for equity investors in terms of the potential shifts in sovereign and corporate governance.

Five days after the surprise Brexit vote, much remains to be clarified in terms of future direction. If anything, the various political moves in the UK and the EU in recent days suggest we face a period of real uncertainty ahead. That said, as the fallout continues it is worth looking for investment opportunities.  We continue to review the market for dislocations in the telecoms sector as we believe a lot of the near-term movements have been predominantly driven by fund flow/ liquidity and…

Five days after the surprise Brexit vote, much remains to be clarified in terms of future direction. If anything, the various political moves in the UK and the EU in recent days suggest we face a period of real uncertainty ahead. That said, as the fallout continues it is worth looking for investment opportunities.  We continue to review the market for dislocations in the telecoms sector as we believe a lot of the near-term movements have been predominantly driven by fund flow/ liquidity and…

Post Brexit Fallout Continues: Looking for Opportunities in European Telcos?

United Kingdom

Vodafone Group PLC is a mobile telecommunications company providing a range of services, including voice and data communications.  The Company operates in Continental Europe, the United Kingdom, the United States, Asia Pacific, Africa and the Middle East through its subsidiaries, associates, and investments.

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Vodafone (VOD LN)

IDEA/Vodafone Courtship: A New No1 in India? Indian Telecom Consolidation Moving Forward.

We have spoken about likely consolidation in the Indian mobile market in the past, given the massive sums that need to be spent to stay relevant in...

New Street Research

Bharti: Jio Worries Overdone. Recovery Continues

Jio has built a huge amount of wireless capacity in an Indian context, but India is a very large country, with thin incumbent networks. If Jio...

New Street Research

Hutchison 1H16 Mixed Results. Strong Cost Management

We do not follow the HK listing but do look at CK Hutchison (1 HK) in Europe as part of the competitive landscape. For a broader look at the recent...

New Street Research

Brexit; Unintended Consequences

In this brief piece we take a considered stance on the likelihood of Brexit actually proceeding in the wake of June’s referendum and examine some...

John-Paul Smith

Post Brexit Fallout Continues: Looking for Opportunities in European Telcos?

Five days after the surprise Brexit vote, much remains to be clarified in terms of future direction. If anything, the various political moves in...

New Street Research

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