Bouygues: Credit Suisse optimistic about Q3

(CercleFinance.com) - This morning, Credit Suisse maintains its buy rating ("outperform") on Bouygues shares, with the French conglomerate set to release its Q3 results on 15 November.


The broker has set a target price of 45 euros for the stock, meaning upside potential of over 20%.

According to analysts, Q3 should result in a modest deceleration in Bouygues Telecom's growth, now that the effect of price increases in the first half of 2017 has passed, with "intense" competition in mobile telephony in France. "However, we expect continued margin expansion driven by top-line growth and see Bouygues remaining an overall winner in the generally more competitive environment," the broker says in a research note. Furthermore, analysts have "slightly" raised their profitability forecasts for the subsidiary.

In addition, the group's Construction and Colas divisions should be helped by acquisitions, the end of strikes at the SNCF, as well as the "solid" trend of roadworks. Credit Suisse expects Colas to post a "strong performance".



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