Investing.com – Tim (BIT:) shares are attempting to recover after Moody’s raised its rating on the telco, bringing the long-term corporate family rating (CFR) to Ba3 from B1 and to Ba3-PD from B1-PD Tim’s probability of default rating (PDR).
At the same time, the agency raised the ratings of the senior unsecured debt instruments and the senior unsecured bank credit facility issued by Tim, its subsidiaries, to Ba3 from B1.
“The upgrade reflects the significant improvement in its financial profile thanks to the expected debt reduction of over 14 billion euros, which will more than offset the deterioration of its business profile,” commented Ernesto Bisagno, vice president of Senior Credit Officer of Moody’s.
After opening sharply higher at 0.225 euros per share from 0.2228 euros the day before, at the end of the morning Tim’s shares proceeded with a more moderate trend, gaining 0.27%.
Of course, there are still many steps to be taken before returning to the 0.32 euro per share of September 2023, but in the meantime, according to Ernesto Bisagno, vice president of Senior Credit Officer at Moody’s, “The upgrade reflects the significant improvement in the financial profile thanks to the expected debt reduction of over 14 billion euros, which will more than compensate for the deterioration of its business profile.”
In short, the sale of the network to KKR, the closing of which should take place soon, could give new life to a company which, between doubts about the sustainability of the debt and an attack by hedge funds, has lost around 30% of its capital in less than 7 months. value on the stock market.
What is Tim’s Target Price
But like Moody’s, there are several analysts who are convinced that the company led by CEO Pietro Labriola can regain share in the coming months.
Analyzing the stock with the InvestingPro tools, in fact, 14 market experts set Tim’s average target price at 0.33 euros, over 46% more than the current 0.2234 euros per share.
InvestingPro subscribers can follow all the updates on the Tim stock by clicking Here, also having access to the Fair Value and the financial health, two indicators that are as intuitive as they are essential in the analysis of a stock.
For those who are not subscribers to InvestingPro, this is the right time to do so!
Are you an investor in Italian securities? Here is the opportunity HERE AND NOW to get the InvestingPro annual plan for less than 9 euros per month. Use the code and get more than 40% off your one-year subscription, less than what a Netflix (NASDAQ:) subscription costs
You will have at your disposal:
- ProPicks: Model portfolios of stocks managed by artificial intelligence with proven performance.
- ProTips: digestible information to simplify many complex financial data into a few words.
- Advanced stock filter: Search for the best stocks based on your expectations, taking into account hundreds of financial metrics.
- Historical financial data for thousands of stocks: This way fundamental analysis professionals can delve into all the details.
- And many more services, not to mention the ones we plan to add in the near future.
Act fast and join the investment revolution – get yours OFFER HERE!
Disclaimer: This article was written for informational purposes only. It does not constitute a solicitation, offer, advice, consultancy or recommendation to invest and is not intended to encourage the purchase of assets in any way. I would like to remind you that any asset class is evaluated from multiple perspectives and is highly risky; therefore, every investment decision and the associated risk remains with the investor.
