OTE receives ‘Buy’ rating and €22.50 target from Optima Bank

Optima Bank has resumed coverage of OTE with a ‘Buy’ recommendation and a target price of €22.50, suggesting a potential upside of approximately 15.6%. The bank highlights OTE’s defensive investment profile, characterized by strong free cash flow generation and improving EBITDA prospects.

Key growth drivers identified include the transition of subscribers from prepaid to contract-based mobile services, inflation-linked price adjustments, increased commercial exploitation of fiber optic networks, and the expansion of IT activities. The System Solutions sector is also expected to contribute significantly, having seen revenue increases of 34% in 2024 and 33% in 2025.

The company’s shareholder remuneration policy is a central focus, with plans to distribute 70% to 100% of free cash flows after leases through dividends and share buybacks. Dividends per share are projected to rise from €0.96 in 2026 to €1.25 by 2030, with dividend yields estimated to increase from 4.9% to 6.4% over the same period. Additionally, OTE maintains a strong credit profile, with S&P upgrading its rating to A-, making it the only Greek company with such a rating.