BGAOF - Proximus A Great Deal Within Telcos But Dividend Safety And Sector Unattractiveness Means We Pass
- Proximus needs about 100 million EUR to reach 100k households in its fiber rollout, and it still has around 4 million homes to go.
- But the Telesign IPO looks good at an EV of 1.3 billion EUR, offsetting some of that burden.
- The normalised multiple is at around 5.6x EV/EBITDA on forecast financials, so it trades below peers.
- The dividend isn't particularly safe, and while there is a value incentive here, we are inclined to pass with more vibrant deals available elsewhere.
- However, within telcos, Proximus might just be the best deal in the markets thanks to Telesign.
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Proximus A Great Deal Within Telcos, But Dividend Safety And Sector Unattractiveness Means We Pass