UPDATE: TELCOS POST FED

On the back of the FED would be happy adding to our Telco longs here.

They have 100% European focus and no EURO currency issues.

In a continued low rate environment they provide attractive yields.

KPN: Fundamentally we like this stock given its 100% European exposure and it has improving operational momentum.

See more thoughts on at original idea

 

ORANGE: Trading on 5.5x next years Ebitda. It’s nearest competitor has just been valued on 14.5x. Not saying that is what Orange is worth but with 3 players, stabilising prices and an effective cost save plan is it worth the sector multiple? Putting it on 6.5x would get you to EUR19.

See more on Orange at original idea