Turkcell Iletisim Hizmetl AS upgraded to "neutral"

Turkcell Iletisim Hizmetl AS upgraded to "neutral"

Analyst Osman Memisoglu of FinansInvest upgrades Turkcell Iletisim Hizmetl AS from "underperform" to "neutral." The target price is set to TRY12.70.

In a research note published this morning, the analyst mentions that the company’s share price has underperformed the MSCI EM Index by 11% and the ISE Index by 10% since April 7. This weakness in the share price was mainly caused by investors reducing their positions in Turkcell Iletisim Hizmetleri in order raise cash for the forthcoming Turk Telekom IPO, uncertainty surrounding the potential acquisition of Syriatel and the intensifying competition, the analyst says. FinansInvest adds, however, that the company’s current share price already reflects the adverse impact of the possible acquisition and the IPO. The 2008 EBITDA estimate has been reduced from $2,750 million to $2,601 million to reflect the weakness in the Turkish lira.