KPN Well Positioned to Reach Its 2022 Guidance; Maintaining Fair Value Estimate

KPN's first-quarter results showed modest revenue growth (1.6% organic) which, coupled with cost controls (minus 0.3% year over year), resulted in flattish EBITDA (after leases) margins at 45.3%. We believe KPN is well positioned to reach its 2022 guidance of EUR 2,400 million in EBITDA (EUR 593 million in the first quarter), although our forecast is slightly more conservative. We are maintaining our EUR 2.80 fair value estimate; at this point we see the shares as slightly overvalued, trading around EUR 3.20.