Emmet Kelly, an analyst from Morgan Stanley, maintained the Hold rating on Royal KPN NV. The associated price target is €4.00.
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Emmet Kelly has given his Hold rating due to a combination of factors impacting Royal KPN NV’s recent performance. The company’s Q3 2025 results showed a slight decline in group turnover, with a notable weakness in the Business-to-Business (B2B) segment, which fell short of expectations. This decline in B2B revenue growth, from 6% in Q2 to just 1% in Q3, was unexpected and contributed to a more muted overall service revenue growth.
Despite these challenges, the company’s adjusted EBITDA after leases was largely in line with forecasts, and there was a positive surprise in free cash flow, which was 17% higher than anticipated due to improved working capital. The company maintained its full-year and medium-term guidance, and while a share buyback program was confirmed, the overall market reaction to the results was slightly negative. These mixed signals, with some areas of strength and others of concern, underpin the Hold rating.
In another report released today, UBS also maintained a Hold rating on the stock with a €4.10 price target.