KPN: Morgan Stanley stays 'overweight' ahead of CMD
(CercleFinance.com) - Morgan Stanley maintains its "overweight" rating on KPN, with a target price of 3 euros, remaining positive ahead of the group's capital markets day next week.
"We see the CMD as a positive catalyst while whatever the outcome is on consolidation, it should not be a game changer for a well positioned KPN," the broker said in a note to clients.
Indeed, the European Commission is expected to decide on the T-Mobile/Tele2 proposed merger in the Netherlands before Friday 30 November.
Beyond this factor, Morgan Stanley expects next week's meeting to provide visibility on KPN's equity story, reassuring in terms of FCF and growth in shareholder returns.
Also, the broker expects KPN to increase its cost savings targets.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"We see the CMD as a positive catalyst while whatever the outcome is on consolidation, it should not be a game changer for a well positioned KPN," the broker said in a note to clients.
Indeed, the European Commission is expected to decide on the T-Mobile/Tele2 proposed merger in the Netherlands before Friday 30 November.
Beyond this factor, Morgan Stanley expects next week's meeting to provide visibility on KPN's equity story, reassuring in terms of FCF and growth in shareholder returns.
Also, the broker expects KPN to increase its cost savings targets.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.