- Zegona Communications
- 21 July 2025 09:52:55
Source: Sharecast
Canaccord Genuity noted there was no new news on Zegona's fixed network monetisation in its FY25 results, other than it was "well-advanced", making this "a good opportunity" for investors to focus on the strong execution of the company's operational turnaround.
In addition to the "impressive operational transformation", Canaccord Genuity continues to believe Zegona can extract more than €2.0bn from a combination of dividend recaps and equity stake sales from its two Netco JVs.
"This should enable it to pay a special dividend of c.£1.6/share (~20% of mkt cap), allowing the subsequent cancelation of EJLSHM's 69% stake. The reduction in share count would imply 'look-through' value of £7.5-15/share, based on peer multiples," said the Canadian bank, which reiterated its 'buy' rating on the stock.
"Our estimate upgrades flow through to a raised target price of 980p from 825p. This is based on a blend of: 1) an 80% weighting assigned to the average of different proforma post-Netco monetisation valuations (4.5x to 6.5x FY26e EV/adj. EBITDAaL); and 2) a 20% weighting of a standalone/'ex Netco monetisation' valuation based on a 5.5x CY26E EV/adj. EBITDAaL multiple."
Reporting by Iain Gilbert at Sharecast.com