KPN: Jefferies raises to 'hold' from 'underperform'

(CercleFinance.com) - Jefferies has upgraded KPN to "hold" from "underperform" on Friday, citing "intensifying newsflow" over potential private equity interest in the Dutch telecom carrier.


"To be clear, there is no confirmation of interest, talks, or a bid," Jefferies wrote in a note to clients.

In the report, the broker reminded that it believes the company faces structural challenges that put free-cash flow growth at risk.

"However, until we have more clarity, an active "underperform" rating no longer appears appropriate,” the broker said.

It has raised its target price for the stock from 1.72 euro to 2.66 euros.

KPN shares were trading down 1.8% on Euronext Amsterdam on Friday afternoon.

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