KPN: Berenberg raises price target
(CercleFinance.com) - Berenberg on Monday raised its price target on Dutch telecoms firm KPN from 2.
70 euros to 2.90 euros, while maintaining a "buy" rating on the shares.
While macroeconomics visibility remains low, the German broker said that the eurozone economy - having rebased in 2020 - is now entering a "sweet spot" that could last for the next 2-3 years.
In a note to clients, Berenberg also pointed out that the Dutch telecoms market environment is the "most benign it has been in years," meaning that KPN should be able to stabilise service revenues in 2021.
"This, taken with a material lessening of working capital drags related to the ramp-up of fibre-to-the-home deployment, should lead to material FCF beats versus consensus", the broker wrote.
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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.
70 euros to 2.90 euros, while maintaining a "buy" rating on the shares.
While macroeconomics visibility remains low, the German broker said that the eurozone economy - having rebased in 2020 - is now entering a "sweet spot" that could last for the next 2-3 years.
In a note to clients, Berenberg also pointed out that the Dutch telecoms market environment is the "most benign it has been in years," meaning that KPN should be able to stabilise service revenues in 2021.
"This, taken with a material lessening of working capital drags related to the ramp-up of fibre-to-the-home deployment, should lead to material FCF beats versus consensus", the broker wrote.
Copyright (c) 2020 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.