Q2 review: more competitive, we downgrade Elisa to Neutral

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Q2 review: more competitive, we downgrade Elisa to Neutral

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European Telecoms

Q2 review: more competitive, we

downgrade Elisa to Neutral

Rating Change

Preferring Telia, downgrading Elisa 21 July 2026

A slightly shaky start to telco reporting from the Scandi telcos with competitive intensity Equity

emerging across all markets, albeit with some efforts by the incumbents to calm the Europe

waters. We maintain our preference for Telia, d/g Elisa to Neutral as the outlook remains Telecommunications

less predictable, reiterate Telenor at Neutral and Tele2 as U/P on valuation grounds. David Wright >>

Research Analyst

Elisa: MSR trajectory challenged, downgrade to Neutral MLI+44 (UK)20 7995 6355

Q2 heightened concerns on earnings delivery, with mobile service revenue slowing to - dawright@bofa.com

1.7% amid competitive pressure in Finland and ISS growth turning negative (-0.5%) as Samuel Bruce >>

customers delayed projects. While management cut FY26 revenue guidance for Telco ResearchMLI (UK) Analyst

Services and ISS, group guidance was left unchanged, which we regard as difficult to samuel.bruce@bofa.com

achieve. Despite expectations for a H2 recovery from improving pricing and promotional

roll-off, we remain sceptical given customer price sensitivity and the risk of renewed

Exhibit 1: Our PO and Rating Changescompetition. We downgrade to Neutral from Buy and cut our PO to €35.7 (from €43.7).

BofA new rating and POs

Telenor: guide cut (again) on Norway/Finland competition

BofA Company Rating Rating PO POQ2 disappointed, with weaker service revenue and EBITDA trends across the Nordics

prompting a FY26 guidance cut. While reported results were affected by a VAT provision, Ticker

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