Telekom Austria AG (TKA), the Vienna-based operator part-owned by Carlos Slim’s America Movil SAB (AMXL), rose for a fifth day as Deutsche Bank AG said there’s room for price increases in Austria and recommended that investors buy the stock.
The shares climbed 5.3 percent to 5.6 euros at the 5:30 p.m. close in Vienna, making them the best performers in the 25- company Bloomberg Europe Telecommunication Services Index (BETELES), which was up 1.5 percent. More than 895,000 shares exchanged hands, about 1.5 times the average daily volume over the past three months.
“Doubling prices in the no-frill brand Bob last January has worked,” Carola Bardelli, a Milan-based analyst at Deutsche Bank, wrote in a note to clients. Bardelli expects Telekom Austria’s main A1 brand to follow its rival, T-Mobile Austria, which increased prices by a 15 percent on average over the weekend, more than anticipated.
For years, four mobile telecommunication carriers have battled over an Austrian population of about 8 million. Average monthly revenue per user has declined from 36 euros in 2005 to 19 euros in 2012, according to data compiled by Bloomberg. With the takeover of Orange Austria by Hutchison Whampoa Ltd. (13), the number of mobile operators is shrinking to three from four.
Bardelli kept her price estimate unchanged at 6.8 euros and raised her recommendation on the Telekom Austria stock to buy from hold.
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