DB cuts JCDecaux on fewer catalysts ahead; prefers Stroeer

Jcdecaux SE

11/06/2024 09:14

** Deutsche Bank expects UEFA Euro 2024 and the Paris
Olympics to fuel the out-of-home (OOH) media companies JCDecaux
 JCDX.PA  and Stroeer  SAXG.DE  momentum in Q2, before it
moderates in H2 on tougher comparison base
    ** It points out that the positive view on the OOH
sub-sector has been reflected in both JCDecaux and Stroeer
shares rallying about 20% YTD
    ** For JCDecaux however, "we now see fewer positive
catalysts in the near-term with the Olympics uplift
well-digested", it says and downgrades the French advertising
company to "hold"  
    ** DB maintains "buy" on Stroeer, which is its preferred
pick, due to stronger growth momentum, cash generation, and
value crystallization optionality
    ** Shares in JCDecaux slip 1%, while Stroeer inches up 0.5%
    ** Out of 13 analysts, five rate JCDecaux "strong
buy"/"buy",​ seven "hold" and one "sell"
    ** For those covering Stroeer, 10 rate it "strong buy"/"buy"
and three "hold"
    

 (Reporting by Mathias de Rozario)
 ((mathias.derozario@thomsonreuters.com))