KPN: Barclays' best pick amongst operators
2,143 +0,03 +1,70%
(CercleFinance.com) - While adjusting its target price from 2.90 euros to 2.70 euros, Barclays reinstates 'overweight' rating on the KPN share, which has also become its best pick amongst European telecom operators, taking Vodafone's place.
The broker believes that 'EU Telco businesses are resilient to the direct COVID-19 impact and likely macroeconomic downturn,' while acknowledging that operators 'are not immune,' and expecting that many of them will cut their targets for 2020.
'Visibility is clearly low. That said, we would expect Telcos to stress the strong recurring revenue streams, solid FCF generation, and low balance sheet/refinancing risks,' it says.
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