JCDecaux: stock up on broker comments
(CercleFinance.com) - JCDecaux's shares (+1.
7%) were the silver medal holders in a downbeat SBF 120 index (-0.7%) on Thursday lunchtime, boosted by UBS analysts upgraded their rating on the stock, seeing an attractive risk/reward profile ahead of a potential reopening of the Chinese economy.
The broker therefore upgraded its rating on the outdoor advertising group to "buy" from "neutral", increasing its target price for the share from 16.9 euros to 20.4 euros.
In their comments, UBS analysts believe that the current share price already incorporates the scenario of a recession in Europe, while ignoring a potential upturn in business in China, despite the easing of lockdowns which the country announced this week.
In the event of a recovery in the Chinese market, combined with a recovery in Europe - which would see the stock return to its pre-pandemic valuation multiples - UBS would value the stock at 28.8 euros.
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