M6: stock falls with broker cutting TP
(CercleFinance.com) - Oddo maintains its Outperform rating on M6 shares, although has reduced its target price for them from 26 euros to 20 euros.
RTL Group's announcement to abandon its plan to sell its 48% stake in M6 seals the end of the stock's speculative dimension, the analyst says, who removes the 15% premium on the fundamental valuation. The broker says that its new target price is now 20 euros, based on updated market data.
While the TV market is facing a slow erosion of its audiences, Oddo remains attentive to the situation of M6 and says that the share's current valuation is very low, trading at 3x 2023 EBITA for a group whose profitability should actually improve slightly over the next 3 years.
The abandoned merger reshuffles the cards for the future of M6 group, with there being few alternatives, Oddo notes, for which, initially it is likely that the group will continue its organic development and make small targeted acquisitions.
The share is currently down almost 8% at about 11.5 euros.
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