Bouygues: Société Générale downgrades to 'sell'.
(CercleFinance.com) - "On the view that fundamentals are overvalued": this is the argument that Société Générale (SG) analysts had this morning to downgrade their “hold” rating on the share of conglomerate Bouygues to "sell".
SG maintains its 12-month target price at 33 euros.
According to the valuation multiples used by analysts, they believe that the implied market valuation (of the assets of the holding company) is too high. In particular, this applies to the Bouygues Telecom subsidiary, both relative to peers and because EBITDA should be "because its EBITDA is set to be almost fully absorbed by capex in the next few years" over the next two years.
In addition, "we remain very sceptical about Telecoms market consolidation actually materialising in France", SG adds, which thus finds the "M&A premium (mergers & acquisitions) unwarranted".
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
SG maintains its 12-month target price at 33 euros.
According to the valuation multiples used by analysts, they believe that the implied market valuation (of the assets of the holding company) is too high. In particular, this applies to the Bouygues Telecom subsidiary, both relative to peers and because EBITDA should be "because its EBITDA is set to be almost fully absorbed by capex in the next few years" over the next two years.
In addition, "we remain very sceptical about Telecoms market consolidation actually materialising in France", SG adds, which thus finds the "M&A premium (mergers & acquisitions) unwarranted".
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.