KPN: Oddo says results below expectations

(CercleFinance.com) - Broker Oddo says that KPN's adjusted revenues fell by 2.
7% in Q4, against -1.8% in Q3, reaching 1.39 billion euros (spot on both the consensus and Oddo BHF's forecasts of 1.39 billion euros).

Analysts point out that adjusted EBITDAaL, which fell by 2.5%, is lower than expected at 561 million euros against 575 million euros expected, i.e. -1.6% in Q4, against +2.9% in Q3.

Analysts say that the 2020 guidance is overall in line with expectations, without being particularly spectacular. The group forecasts stability, or even slight growth in EBTIDAal, while the consensus expected growth of 3%.

They add that KPN has published mixed Q4 results, with adjusted EBITDAal below expectations, convergent subscriber losses for the first time, a 2020 guidance that is 3% below the consensus. As a result the share should suffer. They say that there is not really much upside at the share's current price, which justifies a Neutral rating, along with a target price that they maintain at 2.7 euros (current price = 2.52 euros, down over 6.5% in early trading on Wednesday).


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