Vivendi: UBS ups target price with UMG
(CercleFinance.com) - Confirming its buy rating on Vivendi shares this morning, UBS has raised its 12-month target price for the share from 25.
5 euros to 29 euros, with the media congolmerate group set to announce its quarterly results on 15 April.
This target price give the share upside potential of around 10%.
The broker is hardly changing its earnings estimates, although has raised its calculation for the valuation of Universal Music Group (UMG), the subsidiary that is particularly dedicated to music streaming from 23.5 billion to 28 billion euros (+19.1%). At issue: first taking into account the latest figures of the International Federation of the Phonographic Industry (IFPI) of 2 April, which adds about 2 billion dollars to the calculation. Then there is another two billion euros resulting from the upward revision of UMG's outlook after its outperformance over the last 12 months. UBS also expects UMG's organic sales growth to reach 14% in Q1 2019, double the 7% for Vivendi as a whole.
In addition, the value considered for some of the group's investments, such as its stake in Telecom Italia, which has increased by 20% since the beginning of 2019, also contributes to the broker raising its target.
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.
5 euros to 29 euros, with the media congolmerate group set to announce its quarterly results on 15 April.
This target price give the share upside potential of around 10%.
The broker is hardly changing its earnings estimates, although has raised its calculation for the valuation of Universal Music Group (UMG), the subsidiary that is particularly dedicated to music streaming from 23.5 billion to 28 billion euros (+19.1%). At issue: first taking into account the latest figures of the International Federation of the Phonographic Industry (IFPI) of 2 April, which adds about 2 billion dollars to the calculation. Then there is another two billion euros resulting from the upward revision of UMG's outlook after its outperformance over the last 12 months. UBS also expects UMG's organic sales growth to reach 14% in Q1 2019, double the 7% for Vivendi as a whole.
In addition, the value considered for some of the group's investments, such as its stake in Telecom Italia, which has increased by 20% since the beginning of 2019, also contributes to the broker raising its target.
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.