Barclays ups Proximus on Belgian network JV opportunities

Digi Communications

19/10/2023 08:29

** Barclays upgrades Belgian telecoms company Proximus
 PROX.BR  to "equal-weight" from "underweight" seeing high
potential for Belgian network infrastructure joint ventures
    ** "We expect Proximus to explore JV options with other
operators, specifically in rural areas, which could potentially
not only help its FCF position, but also help increase the
penetration rate of the rural network" -Barclays
    ** The Belgian government is also supportive of a
collaboration agreement between operators, the broker notes
    ** However, it adds fixed competition in Belgium is set to
increase in coming years given the "shift in focus of the
operators and recent deals"
    ** It says Digi's  DIGI.BX  entry into the market next year
will be an overhang for operators, despite a five-year deal with
Proximus potentially offsetting retail losses
    ** Out of 16 analysts covering Proximus, four rate it
"strong buy"/"buy", eight "hold", and four "sell"/"strong sell" 

 (Reporting by Pierre John Felcenloben)
 ((pierrejohn.felcenloben@thomsonreuters.com))