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Investing.com - Kepler Cheuvreux has reinstated coverage on Belgian telecommunications operator Proximus (BR:PROX) with a Reduce rating and a price target of EUR7.00.
The research firm cited concerns about potential market disruption from competitor Digi, which is building its own networks and offering significant discounts of 50% in mobile and up to 80% in broadband services.
Despite Proximus shares delivering a total shareholder return of nearly 50% in 2025, outperforming most European peers, Kepler Cheuvreux expects this performance to reverse as Digi’s competitive threat materializes.
The firm projects a bleak financial outlook for Proximus from 2024-2027, forecasting a revenue compound annual growth rate of -2% and flat EBITDA, with free cash flow generation well below its dividend requirements.
Kepler Cheuvreux analyst Kristoffer Carleskar pointed to evidence from other markets suggesting that a newcomer like Digi could drastically reduce market value for established telecommunications players like Proximus.
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