After de-rating year, Proximus and Telenet offer opportunities - Citi

Orange Belgium NV

12/01/2023 07:34

** Proximus  PROX.BR  and Telenet  TNET.BR  shares de-rating
over 2022 offers an opportunity in 2023, Citigroup says and
upgrades the former to "buy" 
    ** Last year, Proximus shares lost about 48% in value, while
those in Telenet dropped over 52%
    ** "Meaningful impact by the new entrant (on the market) is
at least a few years away and collective price increases across
operators help to absorb rising costs," Citigroup says
    ** The brokerage flags the consensus does not yet fully
reflects Proximus' revenue benefits from two 5%-6% price
increases
    ** "Negative sentiment implies a low hurdle and the dividend
yield will still look attractive (>9%), even after a possible
cut," it adds on Proximus
    ** Citi sees "a better story" for Telenet ("buy") from H2,
as H1 faces tough comparison base
    ** Telenet's H2 will be helped by another price increase,
and could offer positive newsflow like NetCo approval, long-term
fixed wholesale agreement with Orange Belgium, and timeline to
launch broadband in Wallonia
 (Reporting by Piotr Lipinski)
 ((piotr.lipinski@tr.com))