Barclays Downgrades Elisa, Slashes Price Target by 20%

Barclays Revises Elisa's Rating and Outlook

Barclays has downgraded Finnish telecommunications company Elisa Oyj from an "overweight" rating to "equal weight." The investment bank also significantly reduced its price target for the company's stock by 20 percent, setting the new target at €40.

Rationale Behind the Downgrade

The adjustment follows Elisa's fourth-quarter 2025 financial results, which fell short of market expectations on both revenue and profit. Barclays cited several key factors for its revised stance, including intensifying competition within the Finnish telecom sector and projections for slower growth for the operator.

Market and Stock Impact

This downgrade signals caution from analysts regarding Elisa's near-term performance and profitability. The revision and lower price target are expected to influence investor sentiment and could place downward pressure on Elisa's stock price as the market digests the weaker-than-anticipated earnings and competitive outlook.

Summary Outlook

Investors will now closely monitor Elisa's strategic responses to heightened competition and its ability to navigate a slower growth environment. Future earnings reports will be critical in assessing the company's trajectory and validating its market position.

FAQ

Q: Why did Barclays downgrade Elisa?
A: Barclays downgraded Elisa due to its weak fourth-quarter 2025 results, intensifying competition, and a slower growth outlook.

Q: What is the new price target for Elisa from Barclays?
A: The new price target is €40, which represents a 20% reduction from the previous target.

Source: Investing.com