Analysts revise TIM outlook, stocks fall

(ANSA) - Milan, January 18 - The preliminary results for 2018 and 2019 forecasts that led to TIM plunging by 7.7% on the stock exchange to EUR 0.48 are not a big surprise for the market, Bernstein analysts said Friday. There is a great deal of competition in Italy, they noted, and the news should force the company to take a hard look at reality.
    "The opaquely worded outlook for 2019 suggests that the bad news is likely to keep flowing as the company seems rudderless and adrift in turbulent waters," the analysts added. Bernstein has an "underperform" rating on the stock.
    The investment company Equita noted that new CEO Luigi Gubitosi is lowering expectations for 2019.
    In light of information provided by the telecommunications group, Equita analysts have meanwhile revised 2019 EBITDA by 4.5% to 8.1 billion with a drop of 3.3% on the domestic front - made up for by Brazil earnings - and profits and free cash flow by 15% to about 1 billion. The Akros bank noted that a drop in previous targets and a negative trend for EBITDA was not a surprise but that the level of the drop was more than expected and that the use of a formal warning was new for TIM. Bank analysts have thus adjusted the forecast for 2019 and include a higher debt outlook. Mediobanca noted that what actions the CEO planned to take was not yet known.
    The board of directors are expected to present a plan on February 21 alongside definitive data.