Tele2 Recent pullback provides attractive entry point. New CEO likely to provide continuity. Remain OW

Research evidence excerpt

Tele2 Recent pullback provides attractive entry point. New CEO likely to provide continuity. Remain OW

J P M O R G A N Europe Equity Research

18 May 2026

Tele2 Overweight

TEL2b.ST, TEL2B SS

Recent pullback provides attractive entry point. New Price (15 May 26):Skr184.00

CEO likely to provide continuity. Remain OW ▼Price Target (Dec-27):Skr212.00 Prior (Dec-27):Skr214.00

Tele2's 4% pullback over the last month (sector: +6%) following some profit taking

and a change in CEO creates an attractive entry point into a stock delivering European Telecommunication

Servicesaccelerating dividend growth and upside to existing consensus estimates. 2026e

EBITDAaL growth of +7.1% y/y is ahead of LSD-MSD guidance and consensus Ajay Soni AC

at +5.7%. 2026e dividend growth of ~20% y/y to SEK 12.5/share is 14% above (44-20) 3493-8462

ajay.soni@jpmorgan.com

consensus, underpinned by leverage at 1.7x versus a 2.6-2.7x investment grade J.P. Morgan Securities plc

ceiling. Additionally, we expect strategic continuity under new CEO Nicholas

Akhil Dattani

Högberg. Tele2 is +18% YTD (sector: +25%), despite delivering solid Q1 numbers (44-20) 7134-4725

(here). Upcoming catalysts include potential guidance upgrades through 2026 and akhil.dattani@jpmorgan.com

further dividend upside as lower leverage post the Baltic TowerCo transaction J.P. Morgan Securities plc

allows for >100% EFCF payout. We remain Overweight with a PT of SEK 212 Ankur Baheti, CFA

(previously SEK 214). On 2027e, Tele2 trades on 18x PE and 7% EFCF yield. (91-86) 5796-8820

Within our base case, Tele2 trades on 2027e TSR yield of 8% (upside scenario: 9%) ankur.baheti@jpmchase.com

and 2030e TSR yield of 12% (upside scenario: 14%). J.P. Morgan India Private Limited

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