TELENOR : Multiple headwinds keep us cautious near-term; stay Neutral

Research evidence excerpt

TELENOR : Multiple headwinds keep us cautious near-term; stay Neutral

EQUITIES

TELECOM OPERATORS

TELENOR NEUTRALPRICE* NOK156.9  TARGET PRICE NOK168 (UPSIDE 7%) TARGET -1%PRICE EPS36%26e EPS-3%27e

TELENOR ADR NEUTRALPRICE* USD17.9  TARGET PRICE USD18.1 (UPSIDE 1%) TARGET 3%PRICE EPS36%26e EPS-3%27e

Multiple headwinds keep us cautious near-term; stay Neutral

Telenor has underperformed EU Telcos (SXKP) by ~8% (on TSR) since mid-April (see STAMP22 MAY 2026

Securities Research Report Battles: Telenor down to Neutral), driven in our view by weak 1Q results and FX (stronger NOK).

Production time: 05:48* (London time)

Despite this pullback, we remain cautious on near-term prospects and retain Neutral. TP NOK168.

Research Analysts & Publishing Entities

Abhilash Mohapatra The positives: portfolio simplification, buybacks commencing, consolidation potential

BNP Paribas London Branch TNOR continues to deliver portfolio simplification and value creation, with the recent Connexion stake

(+44) 203 430 8675

abhilash.mohapatra@uk.bnpparibas.com sale following up on the Pakistan exit and the transformational True (Thai) stake sale. These

divestments are set to support a major buyback programme (required to offset the implied DPS

dilution from lost Thai associate dividends) and have placed Telenor in a strong position to pursue

4-to-3 consolidation in SW/DE which could yield attractive synergies and boost Nordic exposure.

However, multiple headwinds leave us cautious, especially near-term

Our caution is driven by: 1) Continued NOK strength, which is a headwind to consensus FCF and

impacts dividend coverage, although this is partially offset by devaluation of non-NOK debt. 2)

Ongoing weak macro in Bangladesh (FY26 guidance assumes stabilisation in 2H) and risk around