UBS initiates Bouygues at 'buy' on 'attractive' data centre and telco upside

Bouygues SA

16/10/2026 12:20

** UBS initiates coverage on French conglomerate Bouygues BOUY.PA with a "buy" rating, seeing an "attractive upside" in data centres and a robust telecoms outlook
** Broker believes the company's energy and services unit, Equans, is positioned to benefit from an anticipated acceleration in European data centre construction
** Broker also expects Bouygues Telecom to see solid organic growth driven by continued execution in fixed lines and the stabilisation of its mobile business
** Despite recent macroeconomic concerns weighing on sentiment, UBS says the pullback in the stock provides a "compelling buying opportunity" for investors
** A potential acquisition of telecom rival SFR could help Bouygues Telecom double its equity free cash flow by 2034 following synergies and integration costs, UBS says 
** Up to the previous session's close, shares were down 7.7% YTD

 (Reporting by Hugo Lhomedet)
 ((hugo.lhomedet@thomsonreuters.com))