SFBQF - The Evolution Of NTT: From Telecom Giant To Tech Innovator

2024-03-19 05:47:57 ET

Summary

• NTT is a leading mobile operator with excellent 5G coverage and is one of the largest data center operators globally.
• The data center business is seen as its main growth engine, which should help the company's target to increase group EBITDA by 20% by fiscal 2027.
• NTT is investing in optical chip technology, renewable energy, and developing advanced forecasting technologies, aiming to offer clean energy solutions and reduce the environmental impact of data centers.

Investors can be forgiven if they hear about Nippon Telegraph And Telephone Corporation ( NTTYY ) and think it is an obsolete company not worth their time researching. While it's true that it is perhaps time to drop the word "Telegraph" from its name, and perhaps "Telephone" too while they are it, this is a company that is far from obsolete.

It owns one of the leading mobile operators in the world, with excellent 5G coverage, and it is one of the most important data center operators globally. In fact, it is widely recognized as the third largest data center operator in the world, only behind Equinix ( EQIX ) and Digital Realty ( DLR ). We believe this gives investors a great opportunity to gain exposure to this attractive industry while offering a valuation multiple closer to that of AT&T ( T ) or Verizon Communications ( VZ )....

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