TCNZ Well Positioned For Gains After Bullish Break

摘要

BMI View: Telecom Corporation of New Zealand (TCNZ)’snsluggish performance in the financial markets in recent years hasnlargely been due to weak profitability on the back of strong competition,nstagnant demand for traditional telecoms services, andnuncertainties surrounding the company’s role in New Zealand’snUltra-Fast Broadband (UFB) project. However, the company hasnbeen awarded the bulk of the UFB contracts by the government,nwhich significantly increased the long-term outlook for TCNZ andnsent its share price surging past its multi-year resistance level. We see potential for further gains ahead.