CLSA - downgrade to A$4.20 TP

Audacious
TPM is the fourth mobile network operator We believe TPM is a credible new entrant in the mobile market. It has a large broadband customer base, fibre infrastructure and enough spectrum.
However, TPM is paying a hefty price tag for the spectrum and the venture may not generate an attractive return. In the short term, TPM could be juggling too many balls in the air – building mobile networks in two countries as well as dealing with NBN migration.
We downgrade our rating on TPM to Underperform (from Outperform) and cut our target to A$6.63 (from A$7.59). TPM’s audacious foray in mobile could reduce industry Arpu by 10-15% over three years with TLS the most exposed.

We cut our TP for TLS to A$4.20 (from A$4.70) with U-PF rec unchanged.