GS positive on European internet in 2023 despite macro uncertainty

Believe SA

19/01/2023 10:29

** Goldman Sachs remains positive on the European internet
and media sector in 2023 despite macro uncertainty, highlighting
the normalisation of online growth and penetration post pandemic
    ** It also points to fragmentation in the media landscape
benefiting ad agencies, increased focus on profitability leading
to higher margins, and tailwinds including China's reopening,
recovering auto volumes, and capital redeployment and M&A
    ** It raises online car marketplace Auto Trader  AUTOA.L ,
French digital music company Believe  BLV.PA  and advertising
giant WPP  WPP.L  to "buy", and outdoor ads company JCdecaux
 JCDX.PA  to "neutral"
    ** It downgrades Polish e-commerce firm Allegro  ALEP.WA 
and Bertelsmann's RTL Group  AUDK.LU  to "sell", and German
online used-car seller Auto1  AG1G.DE  and information provider
Relx  REL.L  to "neutral" 
    ** Prosus  PRX.AS  remains one of GS's top picks, as it's
most poised for faster recovery in China and should gain more
share amid an improving competitive outlook in its main segments
    ** Online classifieds is the broker's preferred sub-sector
thanks to its high growth and margins, backed by strong pricing
power and undemanding valuation multiples
 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))