KPN NV (KPN.AS): A quality stock that is easy to own; upgrade to Buy

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KPN NV (KPN.AS): A quality stock that is easy to own; upgrade to Buy

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26 Jun 2026 00:00:00 ET │ 24 pages

KPN NV (KPN.AS)

A quality stock that is easy to own; upgrade to Buy

CITI'S TAKE

Operating in a three-player market in one of the faster-growing populations

in Europe, having a track record of delivery against guidance, and with FCF

about to step up in 2027 as its fibre rollout matures, we believe KPN should

be a core long-term holding for defensive-minded telecoms investors. The Buy ↑ from Neutral

share price has modestly lagged the sector over the last few years, given its Price (25 Jun 26 09:00) €4.44lack of exposure to the theme of in-market consolidation. However, we

think the recent pullback presents an opportunity to increase weighting in Target price €5.00↑

this quality stock. We upgrade to Buy (from Neutral) and increase our TP to from €4.60

€5.0 (from €4.6).

Expected share price return 12.6%

An attractive market backdrop, with consistent delivery of growth and FCF about Expected dividend yield 4.5%

to step forward — The Netherlands is an attractive market, with a broadly rational Expected total return 17.1%

three-player telecoms market, a growing population, and one of the highest Market Cap €16,994Mpopulation densities in Europe. KPN has a track record of delivering consistent

revenue and EBITDAaL growth, which combined with its maturing fibre rollout, US$19,343M

should allow for strong growth in FCF and shareholder returns in the coming years.

Q2 expectations — We expect KPN to report service revenue growth of +0.5% (Q1

+0.6%), with an EBITDAaL decline of -1.2% (Q1+3.1%) due to a tough prior year Price Performance

comparison that included an IP rights settlement, and FCF growth of +20% (Q1 - (RIC: KPN.AS, BB: KPN NA)21%).