Talktalk Telecom Group Plc (LON:TALK) is in the likely feature of a light City schedule for Wednesday, the first day of February.
After a tough few months for the telecoms share so investors will be on tenterhooks.
Recent expert commentary doesn’t bode well.
A preview note last week from the telecoms team at Jefferies painted a bleak picture.
It expects average revenue per user (ARPU) to decline at a faster pace than the market is currently predicting and warns investors the churn rate (level of cancellations) will increase.
“New plans do not effectively re-establish TalkTalk’s value credentials in our view, whilst fibre, mobile and content impair prospects for future margin expansion,” said Jefferies in a note to clients.
Jefferies has dropped its price target to 125p a share (from 140p) and cut back its dividend forecast by 24% to 12p a share. It expects the stock to 'underperform'.
Of the nine analysts logged as following TalkTalk on the Broker Forecasts site, five are in the ‘sell’ camp; the remainder have ‘buy’ recommendations. The consensus price target, which was 243p six months ago, is currently 196p.
Wednesday’s agenda
Final Result: Future PLC (LON:FUTR)
AGM / EGM: Tharisa Plc (LON:THS)
Trading Statement: Talktalk Telecom Group PLC (LON:TALK)