Wednesday, 2 February 2022 Reading time : 2 minutes

Despite fierce competition and partial overcapacity, the telecommunications market is showing solid global growth rates. The entry costs for new players are high thanks to the basic infrastructure required, which protects established companies such as Orange, Vodafone or Deutsche Telekom from short-term disruption.

Long-term institutional investors are gradually realizing the untapped potential in these companies. For example, the Swedish investment company Cevian built up a strategic position in Vodafone just last Friday. The stock immediately surged 4.5%.

In addition, it is also the telecommunications companies themselves who are looking for efficiency gains. A good example here is Deutsche Telekom AG, which is currently examining a merger of cell towers with those of competitors such as Orange.

This momentum is likely to have a positive impact on growth prospects. The analyst consensus is on average "buy" for all three providers.

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Struktured Products for Suscription

Callable BRC on Orange, Deutsche Telekom und Vodafone (EUR)

• 7% Coupon p.a. 
• 63% barrier
• 15 months duration
• Subscription until 8. February 2022
• Termsheet

Callable BRC on Orange, Deutsche Telekom und Vodafone (CHF)

• 6% Coupon p.a.
• 60% barrier
• 15 months duration
• Subscription until 8. February 2022
• Termsheet

Reverse Convertible on Deutsche Telekom (EUR)

• 11% Coupon p.a.
• 100% Strike
• 6 months duration
• Subscription until 8. Februar 2022
• Termsheet

Reverse Convertible on Vodafone (CHF)

• 11% Coupon p.a.
• 100% Strike
• 6 months duration
• Subscription until 8. Februar 2022
• Termsheet

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Leveraged Products on the secondary market

Call-Warrant on Deutsche Telekom

• 17 EUR Strike
• Current Ask 0.14
• Ratio 8:1
• Expiry on 16. December 2022
• Termsheet

All figures indicative, market data as of 02.02.2022

 

Disclaimer
This communication is for marketing purposes. It is neither an offer nor an invitation to submit an offer, to purchase or to subscribe to securities and does not constitute investment advice. You should consult your advisors before making an investment decision.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, financial condition, development or performance of the issuer to be materially different from any future results, financial condition, development or performance expressed or implied by such statements.
The present document has not been drawn up by the research department as defined in the rules of the “Directives on the Independence of Financial Research” published by the Swiss Bankers Association, hence these rules do not apply to this document.
If securities are mentioned in the communication, the base prospectus, the final terms and any key information document may be obtained free of charge from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, VRIS, and from www.zkb.ch/finanzinformationen.