Spark New Zealand (NZSE:SPK) Could Be 28% Below Fair Value On New COO Interest

Spark New Zealand (NZSE:SPK) is drawing fresh attention after appointing Tommy Bjorkberg as Chief Operating Officer, effective 1 October 2026. His remit will include network operations, business technology services, and cyber security.

See our latest analysis for Spark New Zealand.

At a share price of NZ$1.87, Spark New Zealand has seen short term share price momentum pick up, with a 1 month share price return of 2.75%. However, longer term total shareholder returns over 1, 3 and 5 years remain weak, indicating sentiment has yet to recover despite interest around the incoming COO.

If this leadership change has you thinking about where else capital might find growth, it could be a good time to review 106 top founder-led companies

Spark New Zealand looks like a solid, wide reaching telecoms and digital services business, and the new COO appointment speaks to that. The real issue now is whether the current NZ$1.87 share price already reflects its strengths.

Most Popular Narrative: 27.7% Undervalued

On the most followed view of Spark New Zealand, a fair value of NZ$2.59 sits well above the last close at NZ$1.87, putting the focus on how that gap is justified.

Refocus on core connectivity, with 70% of revenue and 80% of gross margin already coming from mobile, broadband and business connectivity, should support more disciplined capital allocation and may lift group EBITDAI and returns over time.

Read the complete narrative.

Want to see what sits behind that valuation gap? The narrative leans on steady top line, stable margins and a richer P/E a few years out. Curious which specific revenue and earnings paths underpin that price target and discount rate combination? The full narrative sets those numbers out clearly.

Result: Fair Value of NZ$2.59 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the Spark New Zealand story could look very different if weak customer spending persists, or if intense mobile and broadband competition continues to squeeze margins.

Find out about the key risks to this Spark New Zealand narrative.

Next Steps

If the mixed sentiment on Spark New Zealand has you weighing both the risks and potential rewards, it makes sense to review the full picture quickly and form your own stance using the 2 key rewards and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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