Lagardère: Oddo upgrades rating

(CercleFinance.com) - Oddo has upgraded its rating on the Lagardère share from Neutram to Buy, with a target price of 27.
5 euros.

Following the recent fall in the share price (-10% over the past month), we believe that it does not integrate the value the ongoing transformation plan (refocusing on publishing and travel retail), Oddo said.

Oddo believes that this move will lead to a sharp increase in the group's FCF (+34%) and as a result its dividend and yield. If Oddo's FCF scenario materialises, the group's 2020 FCF yield would be 9.5%.

The broker expects disposals to be finalised by the end of 2019. By this time, the broker says that the group should have sold its two main assets, Lagardère Studios (estimated value of 200 million euros) and Lagardère Sports & Entertainment (estimated value of 350 million euros).


Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.