Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guides
Guidance and tools
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks Stock plan guidance
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Berenberg hikes target price on Helios Towers following Q1 numbers
(Sharecast News) - Analysts at Berenberg hiked their target price on telecommunications tower business Helios Towers from 230p to 275p on Thursday after the company released its first quarter results earlier in the day. Berenberg said Helios had delivered "outstanding tenancy additions", which drove a material adjusted underlying earnings beat in the quarter, and also noted that it had made "a significant upgrade" to its full year expectations for tenancy additions, adjusted EBITDA and recurring free cash flow, as well as a requisite increase in discretionary capex.
"We upgrade our FY26, FY27 and FY28 forecasts for recurring free cash flow by 7%, 4% and 5% respectively," said Berenberg.
The German bank noted that while more tenancy additions will result in a higher discretionary capex spend in FY26, "the significant benefits of the additions" will flow into FY27, FY28 and beyond. It also pointed out that of the 1,000 incremental tenancies implied by the upgrade, Helios now expects to see a $5m benefit to adjusted EBITDA in FY26, but a benefit of "at least $15m" to adjusted EBITDA and recurring free cash flow in FY27, FY28 and beyond.
"We now calculate Helios's incremental ROIC in FY26 to be c20% - well above any reasonable estimate for its cost of capital - and c30% from FY26 to FY30. We emphasise that there is no change to Helios's target of a 2.5x tenancy ratio by FY30," said Berenberg, which reiterated its 'buy' rating on the stock. "Helios trades on 9.1x FY26 EV/EBITDA and a 7.8% RFCF yield."
Reporting by Iain Gilbert at Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Diversity, Equity & Inclusion Reports | Doing Business with Fidelity | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document or Product Summary document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
