Despite the positive ruling from the Court of Appeal in Rome ordering the restitution of a concession fee for a telephone company from 1998, Tim experienced a significant fall on Piazza Affari. The legal process lasted almost 15 years, leading to uncertainty about whether Tim would receive the amount due quickly or have to wait for an appeal to the Court of Cassation. Equita experts viewed the ruling as significant due to its amount and visibility. They appreciated the management’s cautious communication approach regarding potential upside pending the ruling’s outcome.
Equita also expected the ruling to result in a substantial capital gain at the company level, although its impact on overall profitability remained uncertain. They confirmed a ‘Buy’ rating with a target price for Tim’s shares. Kepler Cheuvreux experts anticipated that if there was a potential reimbursement of 1 billion euros by the State, it could significantly benefit Tim, contributing to de-leveraging the company and potentially financing dividends earlier than expected. While this gain offered a compensating factor for negative debt surprises, uncertainties remained in industrial plans and corporate governance.
Following the legal proceedings, continued volatility in Tim’s stock and potential uncertainties may keep some investors out of it. An hour and a half after the session ended, Tim’s shares dropped by 2.33%. Despite positive news about court ruling, investors were cautious about future outcomes and impacts on financials.
