KBC upgrades Bpost on lower risks, shares rise

Bpost SA

28/09/2023 08:47

** Shares in Bpost  BPOST.BR  rise over 5% after KBC
Securities upgrades the Belgian postal services provider to
"buy" from "hold" and raises TP by more than 70% to 6.9 euros
    ** It cites increased visibility, lower governance risk, and
lower-than-expected financial impact from compliance review as
the main drivers behind the upgrade
    ** KBC expects the impact from the internal compliance
review related to the management of the 679 accounts, fines and
license plates to be "significantly" lower than originally
assumed
    ** Bpost said last week it had taken a 75 million euro
($78.8 million) provision to repay the overcompensation to the
Belgian State
    ** KBC dubs the company's financial position "healthy" and
says it still expects Bpost to pay out its dividend for 2023
    ** "We believe the appointment of Chris Peeters as CEO will
set the stage for a more stable governance," the brokerage adds
    ** KBC estimates the CEO change will boost a return in
investor confidence and help lower Bpost shares' 50% discounts
vs peers

($1 = 0.9514 euros)

 (Reporting by Laura Lenkiewicz)
 ((Laura.lenkiewicz@thomsonreuters.com))