Telecoms and broadband group Talk Talk PLC (LON:TALK) has received big target price cut from UBS.
The Swiss broker chopped its target by a quarter to 160p after disappointment with the latest results.
They contained guidance towards the lower end of the previous range and a 98,000 decline in retail customers.
Average revenue per user (ARPU) was also lower than UBS expected, which prompted the cut in forecasts for revenue, underlying earnings and a 25% reduction in EPS.
Worries over TalkTalk’s ability to retain its subscriber base and grow usage revenues will hang over the shares, suggests UBS, though if it can manage the transition to new pricing plans it could emerge with a stable subscriber base.
But UBS is being cautious and has reduced its target from 215p to 160p with a ‘neutral’ view.
Shares were down 2% to 160.5p.