Vivendi: a buyer, UBS bets on streaming

(CercleFinance.com) - UBS this morning confirms its buy rating on the Vivendi share, betting on an acceleration in growth of the group's music division, despite a high comparison basis.


The broker maintains its 12-month target price at 26 euros.

Analysts believe that the music division UMG, which is being driven by the soaring growth of streaming, could surprise pleasantly at Vivendi's quarterly trading update on 17 May. UBS expects that organic growth in Vivendi's streaming business, which reached 23% in Q4 2017, could be close to 30% in Q1 2018, despite a trend that was already very robust in Q1 2017 (+49%).

UBS' optimism is based on publications and forecasts by peer streaming operators such as Spotify, Apple and Amazon. Analysts also believe that UMG's losses in market share are expected to have slowed between Q4 2017 and Q1 2018, especially since the 2017 distribution agreements reached with Facebook and Tencent will be fully effective this year.



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