Bouygues: Credit Suisse still a buyer.
(CercleFinance.com) - Credit Suisse maintains its buy ('outperform') rating on the Bouygues share, after the French conglomerate published good quality interim results.
The broker also maintains its target price at 41 euros.
Indeed, analysts have increased their estimates for the group's 2017 operating profit by 10% in order to take into account the integration of Nextdoor into the group's Real Estate division. The movement has been more limited in 2018 (+1%), although Credit Suisse's forecast exceeds the consensus of 3%.
The main arguments developed by analysts include the good health of the Telecoms and Construction divisions, which is set to continue, and be reflected in the consensus' estimates.
Credit Suisse's report also writes that, “Bouygues shares were trading at almost 2x their current level the last time (10 years ago) when the French economy was doing this well and Bouygues Telecom was achieving this level of annual EBITDA generation (2006A and 2018E both E1.2bn EBITDA in Telecoms).”
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.
The broker also maintains its target price at 41 euros.
Indeed, analysts have increased their estimates for the group's 2017 operating profit by 10% in order to take into account the integration of Nextdoor into the group's Real Estate division. The movement has been more limited in 2018 (+1%), although Credit Suisse's forecast exceeds the consensus of 3%.
The main arguments developed by analysts include the good health of the Telecoms and Construction divisions, which is set to continue, and be reflected in the consensus' estimates.
Credit Suisse's report also writes that, “Bouygues shares were trading at almost 2x their current level the last time (10 years ago) when the French economy was doing this well and Bouygues Telecom was achieving this level of annual EBITDA generation (2006A and 2018E both E1.2bn EBITDA in Telecoms).”
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.