Stifel starts Believe with 'buy' on digital positioning, investment strategy

Believe SA

02/05/2023 10:00

** Stifel initiates Believe  BLV.PA  with a "buy" rating,
citing the French music industry company's "unique" positioning
in a still growing digital market and its investment strategy in
emerging regions such as Asia
    ** The broker says the company is taking full advantage of
the music market and streaming platforms' growth - Stifel
expects the market to grow at a 10% rate in five years despite
tough economic environment
    ** Believe is "significantly undervalued" and outperforming
peers such as streaming giant Spotify  SPOT.N  as well as the
major record labels, and "should continue to outperform its
industry", Stifel notes
    ** The broker says the despite being loss-making, the
company is generating positive FCF, and expects profitability to
improve "as its business model converges with that of the
majors"
    ** Stifel sets PT at EUR 18.5, seeing a 71% upside potential
    ** Among 10 analysts covering the stock, eight rate it
"strong buy" or "buy" and two "hold"
    ** Believe shares rise 4.6%, paring earlier gains of as much
as 8.1%

 (Reporting by Olivier Cherfan)
 ((olivier.cherfan@thomsonreuters.com))