Vivendi: Oddo forecasts for third quarter

(CercleFinance.com) - The media conglomerate Vivendi, will unveil its Q3 results next Thursday.


Prior to this publication, Oddo confirms its Buy rating on the stock, maintaining its target price of 26.5 euros per share.

The broker is banking on UMG reporting a very good performance, with organic growth of 12% (driven by a very favourable exit schedule and great success in the US, which represents 9 of the top 10 places in September). However, Canal+'s performance should be more mixed, although the operational momentum has been improving in recent weeks (3 key agreements in content), Oddo says.

Two catalysts could support the share price in next few months/weeks: 1/ Bolloré continuing to buy shares (30 million bought since August and a return of 10 million shares borrowed); 2/ announcements around the sale of shares in UMG's capital, the broker adds.

Oddo expects EBITA of 844 million euros, representing 13% growth relative to 2017 (margin +130 bp).



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