Can Belgian Incumbent Telco Proximus Expect A Rebound After Turbulence?

2025-06-03 14:43:19 ET

Summary

• Proximus shares are trading close to decade lows. The company is healthy, but turbulence in recent years has led to a significant decline in value.
• The outlook for 2025 is stable. There's even a minor growth of 2% overall revenue projected.
• Proximus' valuation is much lower than comparable company KPN. The reliable focus on shareholder returns by KPN is one factor that can explain this valuation gap.
• If Proximus delivers against the 2025 guidance and renews the focus on shareholder returns, a rebound of the shares towards historical normal valuations can be expected.

Recent Bargain Valuation For Proximus

Proximus ( OTCPK:BGAOY ) ( OTCPK:BGAOF ) is the battered incumbent telco in Belgium. The company shares reached a decade-low trading prices around the beginning of 2025, following turbulence in many different areas over the last few years. Prolonged selling of shares by investors and the loss of company value has been significant, if not staggering. When Proximus shares traded at the recent bottom price of ~4.80 euro last January, the company valuation saw true bargain levels with a P/E ratio of only ~3.5x. While telcos can sometimes be the subject of severe doubt in the market, such a low valuation is not often seen....

Read the full article on Seeking Alpha

For further details see: