Berenberg Rate Sunrise Communications (SNRE) as a ‘Hold’ Amid Swiss Growth Concerns

Sunrise Communications AG (NASDAQ:SNRE) is one of the 15 successful spin-off companies. Berenberg initiated coverage on SNRE with a Hold rating and a CHF49.00 price target on June 26, suggesting around 10% upside.

Berenberg Rate Sunrise Communications (SNRE) as a ‘Hold’ Amid Swiss Growth Concerns

Source: unsplash

The valuation was derived using a discounted cash flow (DCF) model, reflecting cautious optimism in the stock’s potential. The firm cited ongoing pressure on Swiss telecom service revenues, driven by price-sensitive consumers and intensifying competition from low-cost sub-brands and MVNOs. While maintaining a neutral view, Berenberg signaled it could take a more bullish stance if signs of sustained service revenue growth re-emerge in the Swiss market.

Sunrise Communications AG (NASDAQ:SNRE) was spun off from Liberty Global late last year. The telecommunication company provides high-quality mobile, landline, broadband, and TV services to residential customers. It also offers business customers 360° communications solutions and integrated ICT solutions for connectivity, security, and IoT.

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Disclosure: None. This article is originally published at Insider Monkey.