Zegona Communications (1K) | Buy | Feedback from our meeting with the CEO

Research evidence excerpt

Zegona Communications (1K) | Buy | Feedback from our meeting with the CEO

#EstimatesRevision #HighConviction #Proprietary

Release date: 28 May 2026

Company research

BuyZegona Communications

European SMID SelectedUnited Kingdom | Telecom services Beta Profile: MCap: GBP4.2bn List

Target Price: 2300p Change in TP: 0.0 % Bloomberg: ZEG LN Reuters: ZEG.L

Current Price: 1812.00p Change in Sales: -0.3% 26E/-3.5% 27E Free float 31%

Up/downside: 26.9% Change in Adj EBIT: -1.0% 26E/-1.3% 27E Avg. daily volume (GBPm) 1,843.9

YTD abs performance 29.9% Market data: 27 May 2026 Change in Adj. EPS: -1.4% 26E/-1.0% 27E

52-week high/low (GBP) 1868.00/668.00

Feedback from our meeting with the CEO Price performance

Why this report?

We hosted a virtual meeting with CEO Eamon O'Hare, who walked us through

the journey to reach the target of EUR1bn op. FCF and his view on the Spanish

market. We take the opportunity of the note to remove Finetwork after the

recent judicial decision, to preview a solid Q4 and to reiterate our positive

stance on the stock on the back of the attractive valuation vs peers and recent

transaction, the ongoing transformation and levers (B2B, wholesale, FiberCo,

RANCo, DC and property optimisation) and the upside to consolidation.

Key findings

Zegona sees >EUR1bn op FCF in a few years or over 25% op. FCF margin vs c. 20%

in FY2026. The capital allocation will be announced post summer .

The company target is to grow revenues in line with the market, leveraging on FY to 31/03 (EUR) 03/26E 03/27E 03/28E

current tailwinds: GDP, immigration, low energy prices and three rational players. Sales 3,621 3,624 3,634

EBITDA adj. 1,835 2,046 2,086

Digi only affects c. 10% of Vodafone Spain's revenue pool, and Zegona sees no EBIT adj. 377 536 676

need to adjust prices.