BofA Securities Lowers Turkcell Price Target to TRY126.40, Maintains Buy Recommendation
BofA Securities has lowered its price target for Turkcell to TRY126.40 while maintaining a Buy recommendation, citing expected revenue growth of around 7% and strong margins of 43% by 2026. Turkcell's recent Q3 2025 results exceeded expectations, with revenues of TRY59.5 billion and EBITDA of TRY26.2 billion, and the company is set to benefit from a $3 billion investment in a hyper-scale data center with Google.
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BofA Securities has reduced its price target for Turkcell (NYSE:TKC) to TRY126.40 while maintaining a Buy recommendation. Turkcell is currently trading at $5.61, indicating potential undervaluation against its fair value.
BofA cites expected revenue growth of approximately 7% (excluding inflation) and robust margins of 43% by 2026. The bank also highlights Turkcell's strong free cash flow yield of 24% and the commercial launch of 5G in April 2026 as a performance driver.
Furthermore, Turkcell's financial position is positive, with a projected net debt to EBITDA ratio of 0.9x for 2026 and a dividend payout ratio of 50%. Recently, Turkcell reported Q3 2025 financial results, with revenues of TRY59.5 billion and EBITDA of TRY26.2 billion, exceeding analyst expectations. Additionally, Turkcell and Google announced a $3 billion investment in a hyper-scale data center in Turkey.
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