TSC Ratings Update: Buy Turkcell

We rate Turkcell Iletisim Hizmet (TKC Quote) a buy. Our recommendation is based on the company's impressive revenue growth, improved earnings, and notable return on assets and equity. These positives are further supported by increasing subscriber base, improving average revenue per user, and higher average monthly minutes of usage per subscriber.

However, deteriorating margins, rising debt and slowdown in the Turkish GSM market are the downside risks to our buy rating.

Here are the earnings highlights: ...