BPI Research considers the prime minister's remarks during the state of the Nation debate will harm Altice, which opens a window for Nos to conquer the public and business market.
During the state of the Nation debate, António Costa criticized Altice’s restructuring of PT Portugal, calling it “irresponsible” and warning against the risk of a “dismantle” and of cutting back on job positions. BPI believes the attack “put Altice under pressure and are likely to benefit the other operators”, such as Nos.
“I am also concerned about PT’s evolution, because I am afraid of the irresponsible way in which the privatization was made […]. This could cause a dismantle and risk not only many job positions, but the company’s future“, stated the head of the Government about the alleged “intimidation” environment among PT Portugal professionals.
BPI Research analysts state this attack could influence Altice’s clients, both private consumers and enterprises. Nonetheless, the largest impact could come from the Government, which is Altice’s major client, says BPI Reseach in the note sent this Thursday.
“We believe that the way Altice will manage this crisis could have material implications in the outlook of the telecommunication’s sector in Portugal”, emphasizes the analyst who wrote the note, Pedro Oliveira. “We do not exclude a scenario where NOS has another opportunity ti grab a big slice of market share particularly in the corporate and public segments”, he further explains.
We do not exclude a scenario where NOS has another opportunity to grab a big slice of market share particularly in the corporate and public segments.
Note: The information presented is based on an issuance from the investment bank, meaning it is not a recommendation from ECO. Concerning investment decisions, readers should consult the bank’s complete research note and speak to their financial intermediate.