In this analysis, we delve into recent developments in the telecommunications (telco) sector, focusing on NBN and mobile pricing trends, updates on significant events such as the 5G spectrum auction, and our adjusted forecasts. Additionally, we'll discuss our revised sector view and provide insights into specific companies within the industry.

Revised Sector View

Based on our comprehensive analysis, we have adjusted our sector view for the telecommunications industry. This assessment considers various factors, including market dynamics, regulatory changes, and company performance.

Telstra Group (ASX:TLS)

While Telstra Group (ASX:TLS) remains a key player in the telco sector, we maintain a Hold rating on the stock. This decision is influenced by the perceived risk/reward profile, which we believe is negatively weighted due to its premium valuation.

TPG Telecom (ASX:TPG)

Conversely, we have an Add rating on TPG Telecom (ASX:TPG). We see a more favorable risk/reward scenario for TPG Telecom, driven by its comparatively lower valuation within the sector.

Superloop (ASX:SLC)

Despite its status in the small-cap segment, Superloop (ASX:SLC) continues to exhibit promising potential. We maintain an Add rating on Superloop, considering it to offer the best value proposition within its category.

In conclusion, the telco sector is undergoing significant changes, influenced by pricing trends, regulatory developments, and technological advancements.

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Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

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We review recent NBN and mobile pricing trends, update our forecasts for recent events including 5G spectrum auction, and highlight our move to a mildly underweight sector view on telecommunications.
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