Shares of Inwit, Italy’s telecommunications tower operator, climbed 1.7% to €6.145 on Monday, paring losses from a 52-week low of €5.975 touched earlier this month.
The gain followed an upgrade from Barclays, which raised Inwit’s rating to above average from neutral, citing what it described as overly bearish assumptions in current valuations. Barclays set a target price of €8.6 for the stock, implying roughly 40% upside from Monday’s close.
The upgrade coincided with a similar move for Inwit’s main Italian rival, Cellnex Telecom, which Barclays also lifted to above average. Analyst Maurice Patrick, who leads Barclays’ European telecom coverage, attributed the sector’s rebound to excessive pessimism over contract renewal cuts exceeding 25%, which he argued was not justified by fundamentals.
Broader European equity markets offered little support, with U.S. benchmarks trading mixed to lower as the gains in Inwit and Cellnex were driven almost entirely by analyst action rather than macroeconomic momentum. Barclays’ team highlighted a confluence of pressures weighing on European tower stocks, including weak mobile capital expenditure, elevated merger and acquisition activity in the telecom sector, contract renewal uncertainties, and higher interest rates.
Inwit’s shares have faced persistent downward pressure over the past year, but Monday’s move reflected a shift in sentiment following the upgrade. The company remains embroiled in legal disputes with major clients TIM and Fastweb over termination rights under the Master Service Agreement, with a final court decision expected in November 2026. Analysts noted that current valuations already embed significant downside scenarios, reducing the risk of further negative surprises from the ongoing litigation.
The upgrades for both Inwit and Cellnex underscore a tentative rebound in sentiment toward European telecom infrastructure stocks, though risks remain tied to contract renewals and broader macroeconomic conditions.
