Vivendi: Oddo BHF doesn't rule out alliance with Apple
(CercleFinance.com) - This morning Broker Oddo BHF maintains its buy rating on the media conglomerate Vivendi, detailing the scenario of a potential alliance with Apple.
The broker's target price of 26.2 euros suggests upside potential of around 15%.
Indeed, the US giant Apple seems to want to expand its offer in terms of content, for example in video and games. Therefore, another analyst wonders whether Apple could he be tempted to takeover Netflix, which at present has a market cap of about 150 billion dollars on the Nasdaq.
However, Oddo BHF says that this is "very unlikely" as even for Apple, it would be a huge operation, representing a "complete rupture" with its acquisition strategy. However, an alliance with Vivendi would seem to us strategically and financially much more relevant and therefore credible, analysts speculate.
The Californian tech giant could get buy half of Universal Music Group (UMG) for 10 to 20 billion dollars, which would enable Apple to catch up with Spotify based on partial exclusivity, therefore supporting its sales of terminals. In addition, there is a possible video alliance with Canal+.
This is obviously just one scenario, although among Vivendi's possible partners for UMG, Apple seems to us as the most credible and potentially the most value-creating, the broker concludes.
Copyright (c) 2019 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's target price of 26.2 euros suggests upside potential of around 15%.
Indeed, the US giant Apple seems to want to expand its offer in terms of content, for example in video and games. Therefore, another analyst wonders whether Apple could he be tempted to takeover Netflix, which at present has a market cap of about 150 billion dollars on the Nasdaq.
However, Oddo BHF says that this is "very unlikely" as even for Apple, it would be a huge operation, representing a "complete rupture" with its acquisition strategy. However, an alliance with Vivendi would seem to us strategically and financially much more relevant and therefore credible, analysts speculate.
The Californian tech giant could get buy half of Universal Music Group (UMG) for 10 to 20 billion dollars, which would enable Apple to catch up with Spotify based on partial exclusivity, therefore supporting its sales of terminals. In addition, there is a possible video alliance with Canal+.
This is obviously just one scenario, although among Vivendi's possible partners for UMG, Apple seems to us as the most credible and potentially the most value-creating, the broker concludes.
Copyright (c) 2019 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.