- 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.
For further details see:
Proximus: Maybe It's Time To Consider Telcos