M6: Oddo BHF reiterates its neutral recommendation on the stock

(CercleFinance.com) - Sébastien Chenu, founder and vice-president of Rassemblement National (RN), said yesterday on BFM TV that the party could consider privatizing public broadcasting (and therefore France Télévisions and Radio France) if it wins the next legislative elections (06/30 and 07/07), according to Oddo BHF's analysis of the day.


This project had already been mooted by RN in the run-up to the 2022 presidential election.

Following this announcement, Oddo BHF is currently reiterating its Outperform rating on TF1 (target E13) and Neutral rating on M6 (target E18).

As far as TV is concerned, it would therefore only concern: France 2 (general interest), France 3 (regional channels), France 5 (general interest) and France Info (news), representing a total audience share of around 28%.

If this project were to go ahead, it would naturally be very negative for private players. The French market would not be able to absorb such an increase in competition. However, it seems to us very difficult to undertake, and the market situation could make such a total privatization impossible' says Oddo BHF.

Such a privatization could lead to a sharp drop in sales and therefore in the margins of the current private players," the analyst points out.

In this context, other options could be envisaged: 1/ partial privatization, for example with the sale of France 2 or France 5; 2/ the status quo, but a major restructuring of France Télévisions and Radio France (cost reduction). At first glance, a mix of these two scenarios seems to us the most credible prospect in the event of a RN victory' adds Oddo BHF.

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