UBS ups Believe on discounted growth potential

Believe SA

21/03/2022 15:05

** UBS ups Believe  BLV.PA  to "buy" from "neutral", saying
the French digital music company's near-term risk to earnings
from Russia are more than priced in and its management delivery
is now "more visible"
    ** The broker has factored in Believe's Russian exposure,
which represents around 9% of revenues, with 60% derived locally
and 40% from Russian artists outside the country
    ** It sees Believe's growth as heavily discounted and thinks
it can execute successfully on value-enhancing M&A 
    ** UBS notes management's better control of centralised
costs" which have led to higher than guided EBITDA margins
    ** The industry backdrop for Believe is favourable thanks to
streaming driving recovery in recorded music and independent
artists increasing their share of the market, it notes 
    ** UBS sees the global recorded music market doubling to
over $45 bln in the next 10 years
    ** Out of 8 analysts that cover the company, six rate the
stock "strong buy" or "buy" and ​two rate it "hold"

 (Reporting by Elena Vardon)
 ((elena.vardon@tr.com))