– Largest telecom tower operator in Europe trading materially below US-listed peers.
– Attractively priced, growing, inflation-protected, non-cyclical business at a normalized high-single-digit FCF yield.
– Redeployment of excess capital (20% of market cap) to value-creating tower acquisitions or share repurchases will make cheap valuation apparent by FY24.
– Trades at 12x Pro-forma/normalized FCF are likely to be achieved by 2024.
– US tower operators are at >20x normalized FCF.
– Using the same multiple on ’24 FCF of €3/share, a valuation target of €60/share.
Exp. gain: +70% to €60/share.
Full $CLNX.MC write-up (free guest account required): https://www.valueinvestorsclub.com/idea/Cellnex_Telecom_SA/3327050398