JCDecaux falls to the bottom of SBF120 on looming uncertainties

Jcdecaux SE

08/11/2024 09:08

** Shares in French advertising group JCDecaux  JCDX.PA 
fall 7.9% to the bottom of France's SBF120 index after its
guidance showed poor visibility despite strong results
    ** For Q4, JCDecaux expects a low single-digit organic
revenue growth rate as it sees macro uncertainties due to
ongoing debates about government budgets in France and the UK
    ** It also expects China to be around flat due to low
consumer demand
    ** Shares are on track for their worst day since March 7,
2024
    ** Analysts at Midcap Partners see a weaker momentum ahead
despite third-quarter results boosted by Paris' Olympic games
    ** The broker said the French advertising group did give
much detail on sales trends, outside of posting a double-digit
organic sales growth in France, the UK, and China in the
third-quarter
    ** "While the sector remains sensitive to household
consumption trends, it is expected that these should be relieved
by the deceleration of inflation and interest rate cuts, even
though global growth ahead is unlikely to be particularly
stimulating", Midcap Partners added

 (Reporting by Nathan Vifflin)
 ((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13;))