JPM starts Havas with 'neutral', sees better alternatives elsewhere

Havas NV

30/01/2025 09:56

** J.P.Morgan starts advertising group  HAVAS.AS , which
recently spun off from Vivendi  VIV.PA , with "neutral" and a PT
of 1.9 euro
    ** Broker says the group "looks cheap" trading on 6.5 times
its 2026 earnings, but has a weaker geographic and business mix,
growth and margins compared to peers
    ** JPM notes Havas may need to invest in M&A or technology
to boost growth
    ** "Its focus on Healthcare and Creative sectors, along with
governance concerns due to Bollore Group's control, adds
uncertainty," it says
    ** While the depressed sector could re-rate, JPM says it
could be better played through WPP  WPP.L , as it has the
financial capacity to recover from a poor performance, IPG
 IPG.N  and Omnicom  OMC.N  post-merger, and Publicis  PUBP.PA 
as an industry leader
    ** Havas has been trading below its reference price of 1.79
euros post since its debut in December

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