Wednesday, 31 January 2018

TalkTalk shares tanks

Capita isn't the only company whose shares have tanked today. Broadband provider TalkTalk is down more than 17% to 108p, largely it seems on the back of a cut in the target price to 90p by the broker Exane.

It argues that broadband customers are increasingly seeking bargains, putting pressure on revenues across the industry.

Exane says TalkTalk had been the main beneficiary of consumers downgrading, but that was is no longer the case: "Their trading momentum appears to have peaked, and their share of the discount market is coming under renewed pressure."

In November TalkTalk spooked investors with a profit warning and cut the dividend.

BBC          News.