Tim’s Stock Takes a Hit Amidst Legal Uncertainty: Can the Telecom Giant Recover?

Despite positive news from analysts, Tim’s stock fell on Piazza Affari. The Court of Appeal of Rome ordered the restitution of the concession fee for 1998 to the telephone company after a 15-year legal process. Analysts are uncertain about whether Tim will be able to collect the amount quickly or will have to wait for the outcome of the appeal to the Court of Cassation. Equita experts commend Tim’s management for their cautious communication approach regarding this potential upside. They also expect the ruling to bring out an important capital gain at the Spa level.

Experts from Kepler Cheuvreux believe that the potential reimbursement of 1 billion euros by the State following legal proceedings would be a positive income for Tim. This gain could contribute to de-leveraging the company, gaining bargaining power in asset sales, or even financing dividends earlier than expected. However, uncertainties remain, including Italy’s efforts to find mitigating factors and issues around industrial plans and corporate governance.

Tim’s stock dropped by 2.33% after trading session, highlighting continued volatility. Analysts caution that uncertainties may overshadow potential upside factors, keeping some investors out of market radar for now. Despite positive news from analysts, there are still challenges ahead for Tim in navigating legal and financial issues.