Truecaller Experiences a Surge After Deutsche Bank Upgrade

The Swedish telecommunications provider Truecaller AB (ticker: TRUE on the Stockholm Stock Exchange) saw its shares rise nearly 8 % on the day of the Deutsche Bank announcement. The move came after the investment bank upgraded its rating to “Buy – Hold” and reiterated a target price of 15 SEK, a significant uplift from previous levels. The jump in share price was the largest intraday gain for Truecaller in over a year, taking the stock close to its 52‑week high of 84.75 SEK.

Deutsche Bank’s Revised Outlook

Deutsche Bank’s analysts cited a number of positive catalysts that had strengthened the company’s fundamentals. In particular, the bank highlighted:

  • Improved revenue outlook – The bank now expects revenue growth to accelerate, reflecting higher advertising revenue and a rebound in the app’s user engagement metrics.
  • Strategic partnership prospects – Discussions with mobile operators and content providers are reportedly progressing, which could open new monetisation channels.
  • Strong balance sheet – With a market‑cap of roughly 3.45 billion SEK and a price‑to‑earnings ratio of 11.1, the company remains well‑capitalised relative to peers.

Given these developments, Deutsche Bank raised its target price to 15 SEK, a 21 % increase from its prior estimate. The bank’s “Buy – Hold” recommendation signals confidence that the stock is undervalued relative to its earnings potential.

Other Analyst Actions

While Deutsche Bank lifted its stance, several other research houses moved their ratings to a more conservative view:

  • Nordea – downgraded the stock to “Hold” from “Buy,” keeping the target price at 15 SEK.
  • ABG Sundal Collier – also trimmed its recommendation to “Hold” but maintained a 15 SEK target.
  • Redeye – reduced its fair‑value estimate to 29 SEK.
  • DNB Carnegie – lowered its target price to 30 SEK yet continued to recommend a “Buy.”
  • SEB – cut its target price sharply to 12 SEK, signalling a more cautious outlook.

These mixed signals underline the market’s uncertainty about the sustainability of Truecaller’s advertising revenue, a key driver of its earnings.

Insider Buying Signals

Amid the broader market uncertainty, Truecaller’s own growth chief Ben Zhang increased his personal stake, purchasing 12 776 B‑class shares on 17 February. This move, reported by Avanza, is often interpreted as a bullish endorsement from company leadership, suggesting confidence in the company’s strategic direction.

Recent Corporate Developments

  • Marshall Wace – The hedge‑fund manager returned as a public short seller after reporting a short position, indicating that institutional risk‑averseness remains elevated.
  • Potential CEO change – Industry observers at Dagens Industri have called for a change of chief executive, arguing that fresh leadership could better navigate the current regulatory and competitive pressures.

These dynamics add layers of complexity to Truecaller’s valuation, as investors weigh insider enthusiasm against external skepticism.

Bottom Line

Truecaller’s stock momentum was spurred primarily by Deutsche Bank’s upgraded recommendation and target price. While the company’s fundamentals—particularly its solid cash flow generation and growing user base—appear sound, the fragmented analyst landscape and ongoing concerns about advertising revenue suggest that investors should monitor upcoming earnings releases and regulatory developments closely. The recent insider buying provides a counterpoint to the cautious stance of several analysts, potentially signaling that the company’s core management remains optimistic about its long‑term trajectory.