CFRA reiterates buy rating on Proximus stock with EUR9 price target

Published 25/06/2025, 15:06
CFRA reiterates buy rating on Proximus stock with EUR9 price target

Investing.com - CFRA maintained its Buy rating on Proximus (BR:PROX) stock with a price target of EUR9.00, citing the company’s stable core domestic operations in Belgium despite competitive pressures.

The research firm noted the price target represents a 2026 EV/EBITDA multiple of 3.8x, which is around Proximus’s historical mean but below the European telecommunications peer valuation multiple of approximately 6x. CFRA considers this valuation fair given the company’s declining margins and structural headwinds.

Proximus has rebased its dividend to EUR0.60 per share, a level CFRA believes is sustainable for the medium term. Management reiterated its full-year guidance for 2025 during its Q1 2025 results, which CFRA views as supporting the sustainability of the dividend payout.

The company expects broadly stable Domestic revenue and EBITDA for the year, along with Group EBITDA growth of around 2%. This outlook comes after Proximus faced significant competitive pressures in 2024.

CFRA indicated it will be monitoring Proximus’s cash flow and financial position as the Q2 reporting season approaches. Proximus also trades in the U.S. as OTC:BGAOF.

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