BGAOY - Proximus: Maybe It's Time To Consider Telcos

• We covered Proximus some weeks ago, focusing on its valuation which was attractive.
• Now we consider it more seriously as questions around the cycle arise and we look for exposures that are highly defensive as recession risks loom.
• Telcos are a safe bet, as people aren't going to shut off their internet in pretty much any circumstance, even if disposable incomes fall quite dramatically under stagflation.
• Proximus is certainly not at the top of a cycle, its price has been deeply languishing, and while its dividend is precarious, its end markets are strong and it has a margin of safety in the multiple.

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