MásMóvil’s move from Spain’s Alternative Stock Market (MAB) to the main stock exchange has marked a turning point for the company, which has seen its stock price rise 135% so far this year. While the share price has started to stabilize after hitting all-time highs, analysts agree there is still considerable upside potential. Eduardo García Argüelles, analyst at GVC Gaesco Beka, attributes this success to a favorable confluence of factors that have driven the stock’s performance.
Following its acquisitions of Yoigo, Pepephone, and LlamaYa, MásMóvil has positioned itself as the fourth-largest national operator in broadband and mobile services. With a market capitalization of €1.23 billion, the company — founded by Meinrad Spenger and Christian Nyborg in 2006 — has established itself in a market traditionally dominated by large players.
A key competitive advantage for MásMóvil has been its pricing strategy. In a market where mergers have reduced competition and led to average price increases of around 5%, MásMóvil has focused on delivering value at fair prices. This approach has helped it expand, particularly among price-sensitive consumers.
Another crucial growth factor has been access to essential infrastructure, enabled by conditions imposed by the European Commission during industry consolidation. These regulations allowed new players like MásMóvil to acquire strategic assets, such as fiber networks, boosting its growth in fixed broadband.
Although Movistar, Orange, and Vodafone still control 80% of the broadband market, MásMóvil has captured 42% of recent market growth. In Q1 2017 alone, it added 77,000 new ADSL lines and 86,000 mobile lines, increasing its customer base to 4.4 million, with an overall market share nearing 8%.
According to Reuters data, analyst consensus remains positive: six out of seven analysts recommend buying, with an average target price of €72 per share — representing a 15.2% upside from the recent close of €62.5.
Victoria Torre of Self Bank highlights that MásMóvil’s stock performance has been so strong that it is now the second-largest telecom in Spain by market value, surpassing Euskaltel, which had twice its market capitalization at the end of the previous year.
Still, analysts warn of potential risks. A key concern is a strategic shift by major competitors like Telefónica, which has already begun adjusting its pricing. Additionally, MásMóvil has announced it does not plan to distribute dividends in 2017 or 2018, though it has not ruled out doing so in the future.
GVC Gaesco Beka notes that the market tends to penalize operators with low growth and emphasizes that September and October are crucial months for the sector. MásMóvil is increasingly seen as a parallel to France’s Iliad — a lean, disruptive telecom that successfully challenged legacy players.
The asset manager remains optimistic about MásMóvil’s medium- and long-term outlook, citing its strong customer acquisition rate, currently above 25,000 per month. However, it advises closely monitoring upcoming data releases from the telecom regulator.
Key highlights:
- Recommendations: Most analysts recommend buying, with only one suggesting hold and none advising sell.
- Shareholding: Major investors include Providence Equity Partners, the Ybarra Careaga family, and asset managers such as Santander and EDM.
- Portability leadership: MásMóvil led the market in net portability in 2016, gaining customers while traditional operators lost ground.
