CHICAGO, June 2, 2011 /PRNewswire/ -- Zacks.com announces
the list of stocks featured in the Analyst Blog. Every day the
Zacks Equity Research analysts discuss the latest news and events
impacting stocks and the financial markets. Stocks recently
featured in the blog include: France Telecom (NYSE: FTE),
Telecom Italia SpA (NYSE: TI), Vodafone Group
Plc. (NYSE: VOD), Google Inc. (Nasdaq: GOOG) and
Apple Inc. (Nasdaq: AAPL).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
Get the most recent insight from Zacks Equity Research with the
free Profit from the Pros newsletter:
http://at.zacks.com/?id=5513
Here are highlights from Wednesday's Analyst Blog:
France Telecom's 5-Year Growth Plan
France Telecom (NYSE: FTE), the largest
telecommunications carrier in Paris, has set a five-year (2011–2015)
strategy to bring the company back to profitability. The five-year
plan is divided into two phases: the first stretching three years
from 2011 to 2013 and the second from 2014 to 2015.
In the first or adoption phase, France Telecom will focus on
revenue growth at a three-year CAGR of 0.6%. EBITDA is expected to
exceed the 2011 level and stabilize in 2013, through cost savings
and improved French business. France Telecom expects cumulative
EBITDA of €45 billion in the three-year period.
The company faces tough competition from Bouygues, Telecom
Italia SpA (NYSE: TI) and Vodafone Group Plc.
(NYSE: VOD) in its domestic market, which accounts for more than
half of its revenue and profit. Competition will intensify further
next year, when the fourth mobile operator, Iliad SA's makes its
entry into the market.
In order to survive in the challenging market, France Telecom
will expand its offerings at the low end of the mobile market and
review possible divestitures of assets in which the company has
minority stakes. In addition, the expected ramp of the procurement
joint venture with Deutsche Telekom would provide France Telecom a
cost benefit of €3 billion through 2015. Moreover, France Telecom
plans to invest €18.5 billion from 2011–2013 in improving and
expanding its networks. This includes €1 billion for the expansion
of its fiber optic network in France.
During the second or conquest phase of the plan, the company
expects France and Enterprise
segments to return to growth with solid improvements in
Europe as well as the Africa and the Middle East region. Revenue and EBITDA are
expected to grow at CAGRs (2013-2015) of 2.7% and 3.4%,
respectively. The company expects capital expenditure of
approximately €9.8 billion.
Apart from these targets, the company is mulling to sell its
European (Austria, Belgium, Portugal and Switzerland) assets worth more than €1 billion
owing to unfavorable regulatory measures, which have adversely
affected the company's revenues. France Telecom might return some
of the proceeds to its shareholders in the form of dividends. The
company is committed to pay an annual dividend of €1.40 per share
in 2011 and 2012.
Finally, France Telecom is also trying to strike deals with
companies such as Google Inc. (Nasdaq: GOOG) and Apple
Inc. (Nasdaq: AAPL) to lower the costs of deploying upgraded
networks in France.
We are currently maintaining our long-term Neutral rating on the
stock with the Zacks # 3 (Hold) Rank.
Want more from Zacks Equity Research? Subscribe to the free
Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and
qualitative analysis to help investors know what stocks to buy and
which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly
traded stocks. Our analysts are organized by industry which gives
them keen insights to developments that affect company profits and
stock performance. Recommendations and target prices are six-month
time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides
highlights of the latest analysis from Zacks Equity Research.
Subscribe to this free newsletter today:
http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc.,
which was formed in 1978 by Leon
Zacks. As a PhD from MIT Len knew he could find patterns in
stock market data that would lead to superior investment results.
Amongst his many accomplishments was the formation of his
proprietary stock picking system; the Zacks Rank, which continues
to outperform the market by nearly a 3 to 1 margin. The best way to
unlock the profitable stock recommendations and market insights of
Zacks Investment Research is through our free daily email
newsletter; Profit from the Pros. In short, it's your steady flow
of Profitable ideas GUARANTEED to be worth your time! Register for
your free subscription to Profit from the Pros at
http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an
offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com
SOURCE Zacks Investment Research, Inc.