Cellnex (CLNX SM) Spain
Real Estate
CLNX announces a share buyback programme of up to €800m for 2025 - much larger (and earlier) than Robert Crimes had been expecting. Given his target price is more than 140% above the current share price, buybacks are hugely value accretive. He sees potential for buybacks of €1.3bn p.a. for 4 more years after 2025, with total value accretion of €12 a share over 5 years, equal to a substantial 40% of the share price. CLNX is 3rd of 24 on Insight’s Stock Ranking System and their preferred pick in Telecom Infrastructure, ahead of Inwit (ranked 7th).
Edition: 203
- 24 January, 2025
EU Towers: A rising risk from land aggregators
Real Estate
Cellnex and Inwit have recently pivoted towards buying more land. Why? In part because they still see a good opportunity to deploy capital attractively, but New Street believes this is also driven by a defensive angle against a gradually rising role of land aggregators in Europe. In this note, they explore in more detail for the first time the role of land aggregators in Europe and how it might affect tower companies in future. They also update some of their broader valuation parameters for these names too. They remain Neutral on the EU tower space at current valuations.
Edition: 185
- 03 May, 2024