Vivendi: Deutsche Bank optimistic ahead of Q3
(CercleFinance.com) - Deutsche Bank has confirmed its buy rating on the Vivendi share this morning, along with its target price of 37 euros, suggesting upside potential of 50%.
The broker's comments point out the "spectacular" performances - close to those of Drake and Eminem, last year - of two singers who have deals with Universal Music Group (UMG) - Taylor Swift and Post Malone. Although it has slowed down, UMG's sales growth, which is Vivendi's main profit centre, is expected to remain above 10% in Q3, excluding FX factors. In addition, analysts believe that Canal+ sales will return to growth in Q3, for the first time in four years.
"Vivendi remains the most compelling large cap stock in European Media & Online, in our view," the broker concludes.
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