Cellnex Telecom’s shares gained 1.2% on Monday, closing at €26.45 after Barclays upgraded the stock to Overweight from Equalweight.
The analyst firm also raised its price target to €38 from €32, citing concerns that current valuations embed excessive pessimism over future contract renewal cuts. The stock reached an intraday high of €26.58, though it remains well below its 52-week peak of €32.71.
Barclays’ reassessment comes as the broader Spanish market, represented by the IBEX 35, provided a neutral-to-soft backdrop. The upgrade aligns with a broader positive stance on European telecom infrastructure, with Barclays also lifting Italian tower operator INWIT to Overweight.
The firm highlighted projected equity free cash flow of roughly €1.5 billion for both 2027 and 2028, translating to a free cash flow yield of about 9%. Barclays’ core argument rests on the view that market pricing embeds contract renewal declines exceeding 25%, a scenario analysts consider overly bearish.
Cellnex Telecom’s shares have lagged behind broader European benchmarks such as the S&P 500 and Nasdaq, reinforcing the case for a valuation reset amid stabilizing sector fundamentals.
