Since its move to the Continuous Market on July 14, MásMóvil, the operator founded by Meinrad Spenger and Christian Nyborg, has steadily climbed the ranks on the Spanish stock exchange. Supported by the acquisition of Yoigo, Pepephone, and LlamaYa, the company has consolidated an upward trajectory that has allowed it to surpass Euskaltel in market capitalization, positioning itself as the second-largest publicly traded telecom operator in Spain, only behind Telefónica.
During its first fifteen days on the market, MásMóvil’s shares rose from €61 to €74.75, an increase of over 20%, boosting its market value to €1.496 billion, compared to Euskaltel’s €1.306 billion. This is a remarkable advance, especially considering that at the end of the previous year, Euskaltel almost doubled MásMóvil’s market capitalization.
Victoria Torre, an analyst at Self Bank, highlights the speed with which MásMóvil has matched Euskaltel’s valuation, describing this growth as “very positive.” However, both companies face significant challenges: Euskaltel is seeking to complete the acquisition of Telecable through a capital increase, while MásMóvil faces the conversion of convertible bonds into shares, backed by ACS and Providence.
Shareholding structure
According to CNMV data, the main shareholders of MásMóvil are:
- The Ybarra family (17.7%)
- Indumentaria Pueri, the investment vehicle of the Domínguez family (Mayoral), with 10.3%
- José Eulalio Poza, founder of Ibercom, who played a key role in MásMóvil’s stock market launch in 2014
- Gala Capital, with 6.15% through NS Servicios
Growth prospects
Despite the strong appreciation, analysts agree that MásMóvil still has upside potential. According to FactSet, the average price target is €70.01, with the majority of recommendations being buy. Victoria Torre points out that fiber optic rollout and its market reception could drive an increase in EBITDA margin over the long term.
In contrast, Euskaltel trades at €8.63, with modest growth of 2.54% so far this year. FactSet assigns it a price target of €10.19, with upside potential of 12.9%, although analysts are divided: 50% recommend buying, while 21% recommend selling.
Telefónica: solid leadership
Telefónica, meanwhile, maintains a more stable performance. Under the leadership of José María Álvarez-Pallete, it reported a 29% increase in net profit during the first half of the year, reaching €1.6 billion. Its shares have risen 8.39% so far this year, trading at €9.56. FactSet sets its price target at €10.53, with 26.3% upside potential, and 44% of analysts recommend buying. Its convergent offer of content, fiber, and integrated services keeps it as the market leader, according to Eduardo García Argüelles of GVC Gaesco Beka.
A new Jazztel case?
MásMóvil’s trajectory is reminiscent of Jazztel, which entered the Ibex 35 before being acquired by Orange in 2015. Although founder Meinrad Spenger does not rule out a similar operation in the future, he states that the company is currently focused on strengthening its business and continuing growth without setting immediate stock market goals.
Expectations continue to rise, with RBC Capital Markets raising the price target to €78 and Morgan Stanley setting it at €85, implying more than 16% upside potential from current levels.
