0048 GMT - The negative near-term earnings impact of TPG Telecom's network-sharing agreement with Optus makes the deal somewhat risky for the Australian telecommunications provider, Goldman Sachs analysts say in a note. They tell clients in a note that the proposed agreement is positive for TPG given the potential for increased mobile subscriber share over time but warn that this is contingent on successful execution. They also note that share gains are not guaranteed even with an improved network, pointing out that Singapore Telecommunications-owned Optus has invested significantly in its regional coverage and discounted aggressively, without making meaningful subscriber gains. GS has a last-published neutral rating and A$5.40 target price on TPG shares, which are down 1.7% at A$4.435. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
April 30, 2024 20:48 ET (00:48 GMT)
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