Vivendi: Oddo says Warner Music IPO is good news

(CercleFinance.com) - On Thursday morning, an Oddo BHF analyst confirmed a "neutral" recommendation on the Vivendi stock, but believes that Warner Music Group's IPO is "good news" for the group.


The broker identifies several impacts for the stock - which are both positive and negative: this WMG transaction is first of all good news in terms of valuation because it creates a strong marker for UMG's IPO (and confirms the valuation obtained in the Tencent transaction). It does not provide more resources to WMG since it represents a sale of shares (and not a capital increase). UMG's main competitor is therefore not expected to be more competitive; however, investors now have an investment alternative to Vivendi in the music business, the broker analyses.

Oddo BHF therefore confirms its target price of 23.50 euros (current price about 22.6 euros, up nearly 3.5%).


Copyright (c) 2020 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.