Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) ranks among the best undervalued European stocks to buy now. On January 12, BofA Securities cut Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC)’s price target to TRY126.40 while retaining a Buy rating for the telecom company. The firm expects Turkcell’s revenue to climb by about 7% excluding inflation in 2026, with strong margins of 43%.
BofA sees the commercial introduction of 5G in April 2026 as a possible catalyst for the company’s performance. The firm also emphasized Turkcell’s unique presence in data centers, which is expected to contribute about 10% of revenue over the following five years.
Another favorable point mentioned by BofA was the company’s financial position, which is expected to be 0.9x net debt to EBITDA in 2026. According to the firm, Turkcell’s leverage level and modest net foreign exchange exposure could enable it to sustain a dividend payment ratio of 50%.
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is a Turkish provider of converged telecommunication and technology services. The core offerings of the company include tower and satellite services, fixed data services, international roaming services, and voice services.
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Disclosure: None. This article is originally published at Insider Monkey.
