Turkcell (TKC) 5G Launch in 2026 Seen as Major Growth Catalyst, BofA Retains Buy Rating

Core Viewpoint - Turkcell Iletisim Hizmetleri A.S. is identified as one of the best undervalued European stocks to buy, with a price target set at TRY126.40 while maintaining a Buy rating from BofA Securities [1]. Group 1: Financial Performance and Projections - Turkcell's revenue is projected to increase by approximately 7% excluding inflation by 2026, with strong margins expected to be around 43% [1][2]. - The company's financial position is anticipated to show a net debt to EBITDA ratio of 0.9x by 2026, which indicates a manageable leverage level [3][4]. - Turkcell is expected to maintain a dividend payment ratio of 50% due to its modest net foreign exchange exposure [4]. Group 2: Growth Catalysts - The commercial introduction of 5G in April 2026 is seen as a potential catalyst for Turkcell's performance [2][3]. - Turkcell's unique presence in data centers is projected to contribute approximately 10% of its revenue over the next five years [2][3]. Group 3: Company Overview - Turkcell Iletisim Hizmetleri A.S. is a Turkish provider of converged telecommunication and technology services, offering tower and satellite services, fixed data services, international roaming services, and voice services [5].