JCDecaux: continues recovery as JPMorgan upgrades
(CercleFinance.com) - JCDecaux shares continued their month-long recovery on the Paris Bourse on Wednesday, as JPMorgan upgraded its recommendation on the stock to 'neutral', mainly on valuation grounds.
Shortly before 11am, the French outdoor advertising group's shares were up 3%, after having jumped more than 7% earlier in the morning, while the SBF 120 index was up 0.1%.
In a sector note, JPMorgan explains that it has decided to abandon the 'underweight' recommendation it has held on the stock for the past two and a half years, citing weak economic activity, fierce competition in the market and a valuation deemed high.
With P/Es down to 12.2x and 12x respectively for 2025 and 2026, compared with a historical average of 21x, the broker highlights a once again attractive valuation, but also a limited risk of earnings disappointment and a speculative aspect linked to the possibility of consolidation in the sector.
All these factors, its stresses, should prevent further underperformance of the stock after a 17% decline in 2024, compared with a 6% gain for the MSCI Europe index.
It has therefore raised its TP from E13 to E17.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
Shortly before 11am, the French outdoor advertising group's shares were up 3%, after having jumped more than 7% earlier in the morning, while the SBF 120 index was up 0.1%.
In a sector note, JPMorgan explains that it has decided to abandon the 'underweight' recommendation it has held on the stock for the past two and a half years, citing weak economic activity, fierce competition in the market and a valuation deemed high.
With P/Es down to 12.2x and 12x respectively for 2025 and 2026, compared with a historical average of 21x, the broker highlights a once again attractive valuation, but also a limited risk of earnings disappointment and a speculative aspect linked to the possibility of consolidation in the sector.
All these factors, its stresses, should prevent further underperformance of the stock after a 17% decline in 2024, compared with a 6% gain for the MSCI Europe index.
It has therefore raised its TP from E13 to E17.
Copyright (c) 2025 CercleFinance.com. All rights reserved.