TELNY - Telenor Taps Into Defense Tech: KNL Deal Could Spark Multi-Billion Growth
2025-05-15 10:03:34 ET
Summary
- Telenor's stock is up 32% YTD, driven by stable service revenues, reduced capex, and resilience against market turmoil with a low beta of 0.21.
- The new NOK 100 billion deal with Finnish and Swedish defence forces will drive growth. KNL is also currently in talks with other NATO countries, and the potential is high.
- Despite low growth in recent years, Telenor's stable performance and strategic military deals position it well for future growth and market resilience.
- Discounted EPS valuation suggests a share price of NOK 190 ($18), with upside potential up to $25 if growth accelerates.
- Telenor offers a compelling low-beta investment with strong momentum, significant KNL growth potential, and a high dividend yield, making it a solid buy for 2025.