JCDecaux: Berenberg cuts target price

(CercleFinance.com) - On Tuesday Berenberg reiterated its buy rating on JCDecaux shares, although reduced its target price for them from 25 euros to 20 euros.


In a study this morning, the broker justifies its decision to reduce its target price by the signs of weakening economic conditions, which should first affect the group's American and European businesses.

However, Berenberg is also concerned about the Chinese market, which represented 20% of the company's revenues before Covid, a level that has been halved by the impact of the pandemic.

The analyst nevertheless points out that the share of the world's leading outdoor advertising company is currently trading at the same EV/EBITDA multiple as at the time of the 2008 financial crisis, even though China is in the process of (gradually) reopening its economy and the travel sector is recovering, he stresses.

As it stands the share is down about 0.4% at 13.6 euros, a mirror image of the market in Paris.



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