Vivendi: BofA raises target price
(CercleFinance.com) - On Tuesday BofA raised its target price for the Vivendi share from 27 euros to 30 euros, believing that share buybacks announced by the media group should enable it to reduce its discount relative to its net asset value (NAV).
In a financial notice last Friday, Vivendi stated its intention to repurchase some 15 million additional shares for cancellation by 30 July.
The deal, which is estimated at 350 million euros, should reduce the group's holding company discount from 20% to 10%, according to BofA analysts' calculations.
BofA - which reiterates its buy rating on the stock - believes that the deazl will enable the entertainment group to alleviate concerns about the allocation of its capital and that it also bodes well for a satisfactory second quarter.
In its comments, BofA added that Vivendi has sufficient leeway to carry out further asset buybacks in the second half of the year.
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