Kepler Cheuvreux Upgrades Viaplay to 'Buy' Following Dutch Operations Sale

Kepler Cheuvreux has upgraded its rating for streaming company Viaplay to “buy” from “hold,” raising its price target to 1.50 Swedish crowns from 1.45 crowns. The upgrade follows Viaplay's recent share-price weakness and what the brokerage now sees as a more attractive risk/reward profile.

The change in outlook is driven by Viaplay's agreement to sell its Dutch operations to DPG Media-owned Videoland for approximately 1.6 billion crowns. Viaplay has stated that the proceeds from the sale are intended to support deleveraging, or the reduction of its debt.

In its analysis, Kepler Cheuvreux described the deal as "strategically sensible," noting that it strengthens Viaplay’s balance sheet and sharpens its focus on its core business in the Nordic region. The brokerage also viewed the timing as favorable, coming before potential sports-rights renewals in what could become a more competitive Dutch market.

Ad

The primary positive impact of the sale is financial, according to the firm. The proceeds are expected to reduce leverage, improve liquidity, and lower execution risk for Viaplay as it continues its cash-flow recovery phase. Kepler Cheuvreux also noted that Viaplay's management has kept its guidance unchanged, signaling confidence in its Nordic strategy.