A stock market analyst considers Nova to be an obvious takeover option in the telecommunications market.
Analysis firm Akkur values Nova shares at ISK 7.32 per share by the end of 2025; 52% higher than the current market price of ISK 4.82 for the telecommunications company’s shares.
Akkur says that Nova is a clear takeover option in the telecommunications market. The analysis, which was conducted by Akkur’s founder, Alexander Jensen Hjálmarsson, points out that Nova’s unit revenue, both in terms of mobile and internet, has increased significantly above its competitors. The company, which owns the largest infrastructure of the Icelandic telecommunications companies, also has stable and predictable revenues and margins.
Among other opportunities at Nova is the possibility of utilizing the company’s loyalty club; one of the largest in Iceland. Nova has also begun a growth journey with the purchase of a 20% stake in Dineout.
Strong competition in telecommunications
It is noteworthy that no private investor is the leading shareholder in Nova. In addition, several of the country’s larger pension funds have little or no stake in the telecommunications company.
As for challenges, Akkur says that there is a lot of competition in the telecommunications market. A lot of capital is tied up in operations that need to achieve acceptable profitability.
Nova’s small size is also mentioned, with the company’s market capitalization currently standing at ISK 17 billion. The company is therefore the third smallest company on the main market of the Exchange, only behind Play and Sýn.
Margrét Tryggvadóttir, who is Nova’s largest individual shareholder with a 2.3% stake, will step down as CEO on December 1st.
