Vivendi: Barclays downgrades stock
(CercleFinance.com) - On Thursday Barclays downgraded its recommendation on the Vivendi share from "overweight" to "equal weight" while increasing its target price from 29 euros to 31 euros (current price: 28.
5 euros, -2.5%).
While the broker welcomes its FY results, which beat expectations, it believes that it is not the group's operating performance that will determine the share's performance this year.
For Barclays, the share price should be more influenced by characteristics that will define the distribution of UMG, which the broker says should be valued at around 39.7 billion euros in a transaction that is taxed at around 10%.
Based on these projections, Barclays has set a new price target of 31 euros, showing upside potential of 6%, which it deems insufficient to justify a buy rating on the stock.
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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.
5 euros, -2.5%).
While the broker welcomes its FY results, which beat expectations, it believes that it is not the group's operating performance that will determine the share's performance this year.
For Barclays, the share price should be more influenced by characteristics that will define the distribution of UMG, which the broker says should be valued at around 39.7 billion euros in a transaction that is taxed at around 10%.
Based on these projections, Barclays has set a new price target of 31 euros, showing upside potential of 6%, which it deems insufficient to justify a buy rating on the stock.
Copyright (c) 2021 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.