Turkcell Continues To Execute, But Macro And Strategic Concerns Remain

Turkey's leading mobile services provider Turkcell (NYSE:TKC) has had a mixed performance run since my last update on the shares. Operationally, the company continues to do quite well, with relatively stable share in the mobile business despite aggressive pricing and ongoing growth in ancillary services. While the shares have risen more than 10%, they've lagged the broader Turkish market a bit, and I'd say the performance is relatively lackluster, given the heightened macro risk.

Although I still think Turkcell shares are undervalued, I likewise still think that macro issues tied to Turkey's economy and international relations loom large. I would also note that there seems to be some uncertainty in the market regarding the company's new strategic priorities regarding business and fintech growth - priorities that are going to demand investment spending. Turkcell pays a decent dividend, and its cash flow will likely support improved dividends from here, so at least, there's a "get paid to wait" argument in play for Turkcell shareholders.

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Turkcell Continues To Execute, But Macro And Strategic Concerns Remain