Christoffer Jennel has written a new company report on Eltel 
On Tuesday, Eltel announced a new network rollout and maintenance partnership agreement with Telenor Norway, valued at approximately EUR 475 million over its initial five-year contract period (2026–2031). The agreement includes two three-year extension options, which could bring the contract duration to 11 years and the total value to approaching EUR 1 billion. Eltel is rising from being one of several regional suppliers to become Telenor’s sole nationwide contractor partner. Although a large portion of the volume is work we assume Eltel is already performing in Norway, the agreement both defends this base and brings in new volume as Telenor consolidates its supplier structure. In our view, winning the contract significantly de-risks the Norwegian unit, provides excellent long-term visibility, serves as a strong stamp of approval for Eltel’s delivery capability, and aligns with the nascent trend of telecom operators consolidating their contractor base. We view the agreement as clearly positive for the investment story and are raising our forecasts accordingly. However, following the strong share price increase driven by the news, we view the overall earnings-based valuation as neutral, with no clear upside at current levels. Therefore, we are lowering our recommendation to reduce (previously accumulate) and raising our target price to SEK 15.40 (previously SEK 13.90) in light of increased forecasts.