SPARK NEW ZEALAND LIMITED (SPK)
Share Price Analysis and Chart

19/06/2026

1

Buy

-

-

Spark New Zealand has underperformed the NZX50 by -15% in the year to date, UBS observes, which could be a combination of a weak economy, continued market share loss and a possible cut to the dividend.

The broker considers the sell-off overdone, as FY26 guidance and FY27 consensus expectations assume minimal growth while the current share price implies no growth.

UBS points out telcos are relatively defensive in weaker economies albeit not immune, and lowers FY26 and FY27 EBITDA forecasts by -1% and -4%, respectively.

While previously forecasting an economic recovery in 2027 the broker now delays this until later in the year or 2028. Buy rating. Target is reduced to NZ$3.00 from NZ$3.50.

FORECAST
UBS forecasts a full year FY26 dividend of 13.81 cents and EPS of 11.22 cents.
UBS forecasts a full year FY27 dividend of 13.81 cents and EPS of 13.81 cents.

26/06/2026

2

Upgrade to Overweight from Neutral

-

-

Jarden upgrades its rating for Spark New Zealand to Overweight with a NZ$2.27 target price following recent share price underperformance.

The analyst notes a compelling valuation entry level has emerged after shares dropped 14% compared to a 2% rise across the broader market index.

Growing overall earnings looks difficult given legacy pressures across the business, particularly concerning broadband gross margins.

Future dividend growth appears unlikely unless capital expenditure is meaningfully reduced.

Mobile divisions remain a constructive earnings lever, leaving group profitability highly dependent on continued benign regulatory conditions.