Sale of Eircom shares urged

Stockbroker Dolmen Securities has urged investors to sell Eircom shares.

Downgrading its rating it said the company’s share price fully reflects the value of the business and there is limited opportunity for further growth.

Analyst Stuart Draper said higher access and broadband revenues at the company are being offset by a fall in voice traffic which is limiting its growth. Dolmen said the entry of new competitors to the broadband market may also present a threat to broadband revenue growth expectations.

Mr Draper said an aggressive pricing challenge from competitors could result in some loss of customers and line rental revenues to broadband competitors.

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