KPN downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded KPN to Equal Weight from Overweight with a price target of EUR 3.90, down from EUR 4.20. The stock has been “a consistent outperformer” and was previously the analyst’s Top Pick, but the firm has cut its 2024/25 free cash flow view by 5%-7% to capture a slower than expected growth trajectory to 2027. While it still sees “lots to like in the story,” the near-term cash flow picture is “underwhelming,” catalysts are “mixed” and the firm sees better upside elsewhere.