Barclays initiates 'small but fit' Havas at 'overweight'

Havas NV

18/12/2024 07:13

** Barclays initiates coverage of advertising company Havas
 HAVAS.AS  with an "overweight" rating and a PT of 2.15 euros
after its spin-off from Vivendi  VIV.PA  earlier this week
    ** Havas is "smaller but getting fitter", it says, expecting
margin improvement and lower taxes to drive the fastest EPS
growth among ad agencies
    ** "The tax status for Havas will change as it has moved
from being under the Vivendi tax group to being treated as a
standalone company," the broker says
    ** It notes that Havas, the sixth-largest advertising
company globally, showed the second-highest organic growth
(4.4%) after Publicis  PUBP.PA  in 2023 
    ** It also likes Havas' industry-leading exposure to
healthcare clients (>30%)
    ** However, it says the company's corporate governance
structure, which includes a Dutch foundation to prevent
potential takeover bids and a loyalty scheme that grants the
Bollore family double voting rights, may deter some investors
    ** "In short, Havas's Chairman and CEO Yannick Bolloré has
ultimate control over the company," Barclays says, adding
investors might see this as "warranting a discount"

 (Reporting by Leo Marchandon)
 ((Leo.marchandon@thomsonreuters.com))