TSX runs higher on rate cut expectations
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.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.