Pareto repeats its Buy rating for telecom operator Telenor with a price target of 150 Norwegian kroner. The bank continues to see considerable uncertainty ahead of the third quarter, including regarding Bangladesh, but believes expectations have come down and that the headwinds are priced in.
Telenor trades at 14 times forward P/E, lower than several Nordic sector peers, and has a dividend yield of 7.6 percent. In addition, share buybacks equivalent to 3 percent over the next three years are expected to support returns.
