Potentially exploring strategic options?

Research evidence excerpt

Potentially exploring strategic options?

Idea

July 27, 2026 03:55 PM GMT

Morgan Stanley & Co. International plc+MCellnex Telecom SA | Europe Emmet B Kelly

Equity Analyst

Potentially exploring strategic Emmet.Kelly@morganstanley.comTerence Tsui +44 20 7425-6830

Terence.Tsui@morganstanley.com +44 20 7425-3095

options? Harrison Williams, CFA

Harrison.Williams@morganstanley.com +44 20 7425-6627

Lindsey C Zastawny

Background. Cellnex shares traded approximately +4% higher last Thursday, Lindsey.Zastawny@morganstanley.com +44 20 7425-1237

following an unconfirmed Bloomberg report indicating that the company is

Cellnex Telecom SA (CLNX.MC, CLNX SQ)

exploring strategic alternatives, including a potential take-private transaction or a

Telecommunications Services | Spain

merger with a competitor. Cellnex has not commented.

Stock Rating Equal-weight

Industry View Attractive

Shares have been weak, management reportedly exploring options. If confirmed, Price target €36.00

we believe investors could view management's willingness to evaluate strategic Shr price, close (Jul 27, 2026) €26.38

52-Week Range €33.79-23.92

alternatives positively, as such actions may be perceived as an effort to enhance

shareholder value. Cellnex shares have underperformed over recent years, with the

Spanish-listed tower operator trading approximately 55% below its 2021 peak.

Cellnex shares have also returned a negative -4% this year, even after yesterday's

out-performance.

Screening from an LBO perspective - end of BTS, but is there enough clean FCF?

In our previous research, we examined the feasibility of a potential LBO model for

Cellnex (link here). Two big picture factors underpin this analysis: i. Clean FCF

generation. Company guidance suggests that Cellnex will generate clean FCF of