Q2s could provide an entry point; Buy

Research evidence excerpt

Q2s could provide an entry point; Buy

Deutsche Bank

Research

Rating Company Date

Buy KPN 3 July 2026

Forecast Change

Europe

Netherlands

Reuters Bloomberg Exchange Ticker Price at 2 Jul 2026 (EUR) 4.22

KPN.AS KPN NA AEX KPN

Price Target (EUR) 5.25

Telecommunications

ADR ISIN 52-week range (EUR) 4.87 - 3.79

Wireline Services

KKPNY US7806412059

Valuation & Risks

Keval Khiroya, CFA

Look through H1 revenue weakness; 8.0% average annual cash returns Research Analyst

The Q2s (22 July) could bring with them some concerns over recent revenue trends +44-20-754-18164

(DBe H1 revenue growth 0.6%, FY guidance 2.0-2.5%) but we would view any

Robert Grindle, Ph.D.

weakness as a Buying opportunity as (1) we expect H2 revenue growth to improve, Research Analyst

with EBITDAaL and FCF growth secure; (2) KPN's fundamentals remain attractive, +44-20-754-58490

particularly with limited FTTH overbuild, and (3) we view valuation as appealing,

Roshan Ranjit, CFA

supported by average annual cash returns of 8.0%. We make minimal changes to

Research Analyst

our EBITDAaL and FCF forecasts ahead of results and reiterate our Buy

+44-20-754-52908

recommendation.

Key changes

B2B and Wholesale weigh on revenue growth; H2 to improve DB EPS (EUR) - ↓ -0.3%

We reduce our FY forecast to +1.7% service revenue growth (previously +2.2%) and Source: Deutsche Bank

part of the weakness is driven by (1) KPN chasing low-margin B2B contracts less

aggressively, and (2) KPN's wholesale customers having had weaker trends. We

still expect H2 trends to improve and our EBITDAaL and FCF growth estimates are

in line with 2026 and mid-term guidance.

A rational FTTH backdrop with evidence of slowing alt-net build

Our FTTH analysis illustrates slowing alt-net build in the Netherlands, with the high