Increasing Inwit’s FVE 18% to EUR 12.60 From EUR 10.70; Firm Lifts 2024 Dividend by 40%

We are increasing Inwit’s fair value estimate by 18% to EUR 12.60 per share from EUR 10.70 after revising medium-term estimates upward. Management now expects 2026 revenue to be above EUR 1.2 billion compared with EUR 1.1 billion before, with a margin of 76% for EBITDA after leases, compared with 75% previously. The improvement is explained by higher expected 2023 inflation compared with management’s original business plan and health of the Italian tower market, where demand for co-location in Inwit’s towers continues to be strong. We are confident Inwit can achieve these targets as we had already highlighted management’s previous guidance was conservative and there was room for further upside. Inwit is a high-quality company with high tenancy ratios (2.16 times at the end of 2022 and expected to reach 2.6 times in 2026), best-in-class inflation protection, and high cash flow visibility with strong EBITDAaL margins (69% in 2022 and expected to reach 76% in 2026). Shares are up 5% at the time of the writing.