Altice Europe: Barclays maintains 'Underweight' rating
(CercleFinance.com) - While nudging up its target price for the share of Altice Europe (parent company of SFR) from 3.
10 euros to 3.20 euros, Barclays has reinstated its "underweight" rating, saying in a sector note that they "continue to see the stock pricing in more than fundamentals".
"The French competitive environment continues to show improving trends in Q3 19. With players having given up on forcing consolidation, this more constructive environment should last," the broker says.
While sector ROCE remains low (around 5%), less promotional activity and lower commercial costs should, Barclays says, support margin expansion, while investment spending remains stable.
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