JPM raises KPN to 'overweight', seeing improving revenue and cash flow

Koninklijke KPN NV

25/09/2026 07:42

** J.P. Morgan upgrades Dutch telecommunications provider KPN KPN.AS to "overweight" from "neutral", citing an attractive entry point as a "weak 2026 narrative fades"
** JPM expects revenue trends to improve into 2027, while free cash flow turns materially higher due to a drop in capital expenditures amid slowing fibre network rollout
** It anticipates this cash to flow into higher dividends and buybacks
** The brokerage says the Dutch telecoms market remains rational with broadly stable prices and consumer preference for fibre over cable continues to benefit KPN
** It raises PT by 8.5% to €5.10, saying the company currently trades in line with the sector even though it typically holds a premium valuation
** Among 20 analysts covering KPN, 10 rate the stock "strong buy" or "buy" and ​10 "hold" -- LSEG data

(Reporting by Clement Martinot)
((Clement.Martinot@thomsonreuters.com;))