Turkcell Sticking To A Plan That's Working, While Turkey Continues To Churn

It has been a while since I've written on Turkcell (TKC), and much of what I said last time still applies. Taken in isolation, Turkcell continues to run itself well, with a business strategy focused on its higher-value services like 4G, digital services, and e-commerce. But at the same time, Turkey's macroeconomic challenges have not gone away, and Turkcell continues to face significant inflation and foreign currency headwinds and an overall lack of investor confidence/interest in Turkey.

You can't really fully separate the company-specific and macro factors here, as the U.S.-listed ADRs have fallen more than 40% over the past 12 months versus a roughly 20% drop in the locally-traded shares. What's more, I can't honestly tell readers/investors that this a stock that is worth the hassle and risk, particularly with the recent CEO change. Turkcell is undervalued even under what I believe to be conservative assumptions, and the company is well-placed to continue funding a healthy dividend, but with a lot riding on the overall health of the Turkish economy and investor confidence in the government, it's a tough recommendation to make.

Continue here:
Turkcell Sticking To A Plan That's Working, While Turkey Continues To Churn