Excellence Investment House today cut its price target for Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), in the light of the developments in the investigation of controlling shareholder Shaul Elovitch and senior managers of the company. Excellence says that the structural separation within the company imposed by the regulator will eventually be canceled, but for the time being the delay means a reduction in the price target for the stock. Excellence's price target is now NIS 6, down from NIS 6.8. Bezeq's current share price is NIS 5.55.
Last week, Excellence published a review in which it said that Bezeq's core businesses were facing challenges, and that foreign investors took a severe view of the Israel Security Authority's investigation of the company.
Analyst Roni Biron wrote last week, "People are focusing more on the investigation, and are not paying attention to the considerable challenge faced by the company, namely the changes in fixed-line telephony, whether in the form of new television platforms or the roll-out of fixed-line infrastructure by Cellcom and Partner, creating much more effective competition."
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2017
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