HSBC starts Havas with 'buy' on growth potential

Havas NV

14/01/2025 11:08

** HSBC initiates coverage of freshly spun-off advertising
company Havas  HAVAS.PA  with "buy", citing expected organic
revenue ramp-up from higher margins, planned M&A 
    ** Revenue growth should be driven by margin improvement,
with adjusted EBIT margins expected to rise by 2-3% by 2028,
HSBC says
    ** Revenue and margins growth should be further supported by
the group's M&A strategy, notably in North America, HSBC adds
    ** "A reversal back to organic growth in 2025 and continued
execution on its medium-term targets could result in potential
share price upside," the broker says
    ** Out of 7 analysts, three rate Havas "buy" and four "hold"
    ** Havas shares have lost about 15.6% so far to about 1.52
euro since their December debut at 1.80 euro 

 (Reporting by Alban Kacher)
 ((alban.kacher@thomsonreuters.com))