Barclays downgrades Elisa, cuts PT after weak Q4 and soft 2026 outlook

Barclays has downgraded its rating on Elisa, a Finnish telecommunications company, following a weaker-than-expected fourth quarter performance and a softer outlook for 2026. The bank has also reduced its price target for the company's shares. This move comes as Elisa reported lower revenues and profits for the fourth quarter, which fell short of market expectations. The company's management attributed the disappointing results to increased competition in the Finnish market and higher operational costs. Additionally, Elisa's outlook for 2026 was revised downwards, indicating a more cautious approach due to uncertain market conditions and potential regulatory changes. Analysts at Barclays cited these factors as reasons for the downgrade, suggesting that investors should adopt a more conservative stance towards the stock. The downgrade reflects broader concerns about the telecommunications sector in Finland, which has seen intensified competition and regulatory pressures in recent years.