Goldman Sachs has reaffirmed Buy ratings for three leading Nordic telecommunications operators, identifying an improved market environment in Sweden as the primary catalyst for better pricing power and earnings across the sector.
The bank highlights structural shifts in the Swedish market - including a decline in competitive intensity and the potential for consolidation - as factors that should sustain a healthier commercial backdrop for operators through the end of the decade.
1. Telia Company
Goldman maintained a Buy stance on Telia Company and said it is more confident in the stock following Telia's decision to discontinue its Halebop mid-market brand. The brokerage argues that removing the Halebop brand will strengthen Telia's pricing power in Sweden by reducing mid-market brand fragmentation.
Goldman assigned a 12-month target price of SEK59 for Telia, a level the bank says implies roughly 20% upside. The firm also projects sector-leading EBITDA growth for Telia of about 6% per year through 2029, with gains driven by cost reductions and the possibility of market consolidation.
In a separate corporate move, Telia announced it will acquire the mobile virtual network operator Telness from Nordic Communications Group. That transaction includes a long-term agreement for Telia to use the Seamless OS technology platform.
2. Telenor
Goldman kept a Buy rating on Telenor, noting that improved market discipline in Sweden should be beneficial for all operators. The bank indicated that consolidation in Sweden is a longer-term catalyst and singled out Telenor as a key beneficiary from firmer pricing trends and a more rational competitive environment.
Recent activity at Telenor includes an agreement with Verdane to establish joint ownership of its Internet of Things unit, Telenor Connexion. Goldman reported that the transaction values the business at SEK7.5 billion and that Telenor will receive SEK3.8 billion in cash as part of the deal.
3. Tele2
Goldman also retained a Buy recommendation on Tele2. The bank said Tele2 is well positioned to capture the benefits of sustained pricing power and inflation-linked tariff increases in Sweden. Goldman expects Tele2 to participate in industry-wide earnings growth as the market structure becomes more favorable and competitive pressure eases.
The brokerage's view centers on a Swedish market where reduced competitive intensity and potential consolidation improve operators' ability to raise prices and expand margins. Goldman projects that these dynamics will underpin earnings growth across the sector through at least 2029, with Telia expected to lead on EBITDA growth.
All three companies retain Buy ratings from Goldman Sachs based on the bank's assessment of market structure improvements, company-specific actions to strengthen pricing, and strategic transactions that reposition assets such as MVNOs and IoT units.