The price cut comes midst political headwinds and issues stemming from new competition and corporate governance.
With Berenberg cut its price target on Telecom Italia (TIM), citing headwinds stemming from governance issues and new competition, TIM’s share prices fell more than 2% in early trading.
Earlier this month, activist investor Elliott Management has wrested control of the board from Vivendi, TIM’s top shareholder, following 2 months of campaigning to shake up the way the media group has been operating.
“Mix a looming price war, political interferences, governance conflicts, forex headwinds and you will end up with a toxic cocktail. This is what is on the menu for Telecom Italia ,” said Berenberg in a note.
As of 0722 GMT, TIM’s share price was down by 1% compared with a 0.3% fall in Milan’s blue-chip index.