We downgrade TPSA (17,65 PLN, 0,28%) from Buy to Hold following the stock’s recent gains. In our view, the financial outlook for the firm is mediocre for both the short-term (1Q11) and the mid-term (2011-2012). Cash-flow generation is expected to remain strong and we see no threats to future dividend payments. However, we expect the fixed-line segment to remain under pressure and EBITDA to remain on a downtrend. We have also applied a PLN 1.50 discount to our fair value estimate to reflect the dispute with DPTG. Overall we value TPSA at PLN 17.48 per share, broadly in line with the current stock price. Hold - Rating downgraded Current price: PLN 17.78* Fair value: PLN 17.48 *priced as at close of business 11/04/2011 Please download full version of the analysis form Stocks / Analyses section.