KBC initiates KPN with 'buy' on fibre-driven growth potential

Koninklijke KPN NV

25/09/2024 08:08

** KBC initiates KPN  KPN.AS  with a "buy" rating, saying
the Dutch telecoms provider's strong foundation gives it an edge
over competitors in terms of future growth
    ** "We believe that KPN has a structural advantage in the
long term, as it is the only provider to roll out fibre on a
national level," the broker says
    ** It expects a significant improvement in free cash flow by
the end of 2026 and a reduction in capex from 2027 onwards
    ** "We also see limited risk of increased competition due to
the highly leveraged balance sheets of competitors," KBC adds
    ** Of 21 analysts that cover KPN, eight rate it "strong buy"
or "buy"​ and 13 "hold"

 (Reporting by Dimitri Rhodes)
 ((Dimitri.Rhodes@thomsonreuters.com;))