KPN: Credit Suisse upgrades to 'outperform'
(CercleFinance.com) - Credit Suisse has upgraded its rating on the Dutch telecom operator KPN stock to buy ("outperform"), vs.
"neutral" previously, based on more optimistic earnings estimates, with the sector set to concentrate in the Netherlands.
At the same time, the broker has raised its target price for the share from 2.65 euros to 3.10 euros, which represents upside potential of around 15%.
"We now forecast a return to EBITDA growth over 2019-21E driven by (1) improving Dutch mobile market revenue trends; (2) a positive change in fibre strategy; and (3) good execution on cost cutting", Credit Suisse says.
Remember that the European Commission recently unconditionally cleared the merger of the Dutch mobile operators Tele2 and T-Mobile Netherlands. Consequently, Credit Suisse is now more optimistic regarding KPN's mobile division.
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.
"neutral" previously, based on more optimistic earnings estimates, with the sector set to concentrate in the Netherlands.
At the same time, the broker has raised its target price for the share from 2.65 euros to 3.10 euros, which represents upside potential of around 15%.
"We now forecast a return to EBITDA growth over 2019-21E driven by (1) improving Dutch mobile market revenue trends; (2) a positive change in fibre strategy; and (3) good execution on cost cutting", Credit Suisse says.
Remember that the European Commission recently unconditionally cleared the merger of the Dutch mobile operators Tele2 and T-Mobile Netherlands. Consequently, Credit Suisse is now more optimistic regarding KPN's mobile division.
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.