Towards acceleration of digital economy: GS resumes Internet & Media sector

Kahoot ASA

20/01/2022 10:37

** Goldman Sachs expects the European internet & media
sector to be defined by the acceleration of the digital economy
in 2022 and beyond, with focus on growth, reinvestment and
post-pandemic repositioning of businesses
    ** The broker generally sees improved growth prospects, high
cash generation and strong balance sheets, but also flags risks
to margins due to greater reinvestment, cost inflation and
competition
    ** GS prefers companies exposed to markets with lower levels
of online penetration such as autos and education, new
monetisation opportunities such as in music segment and less
mature regions
    ** Instead, it remains more cautious on online classifieds
players due to reinvestment risk
    ** The broker expects the reduction in corporate travel and
uncertainty around the hybridisation of working environment to
have a negative impact on events and outdoor activities sector
    ** By contrast, advertising agencies and B2B publishers are
likely to benefit from a growing pandemic-driven demand for
their offerings, the brokerage notes
    ** GS says Prosus  PRX.AS  and Naspers  NPNJn.J  are its
top-picks, thanks to their "attractive secular growth outlooks",
while it remains cautious on stocks with weaker fundamentals in
a post COVID-19 world such as Informa  INF.L , ITV  ITV.L  and
JCDecaux  JCDX.PA 
    
  SUMMARY OF RATINGS
 BUY                    NEUTRAL             SELL
 Allegro  AL0.F         Adevinta  ADEV.OL   Informa  INF.L 
 Auto1 Group  AG1G.DE   Auto Trader Group   ITV Plc  ITV.L  
 Kahoot!  KAHOT.OL      Believe  BLV.PA     JCDecaux  JCDX.PA 
 Learning Technologies  InPost  INPST.AS    MediaForEurope
 Group  LTGL.L                               MFEB.MI 
 Naspers  NPNJn.J       Rightmove  RMV.L    
 Pearson  PSON.L        Schibsted           
                         SBSTA.OL           
 ProSiebenSat.1         Scout24  G24n.DE    
  PSMGn.DE                                  
 Prosus  PRX.AS         Stroeer SE & Co     
                         SAXG.DE            
 Publicis  PUBP.PA      Wolters Kluwer      
                         WLSNc.AS           
 RELX Plc  REL.L                            
 RTL Group  AUDK.LU                         
 Universal Music Group                      
  UMG.AS                                    
 Vivendi  VIV.PA                            
 WPP Plc  WPP.L                             
  Source: Goldman Sachs Global Investment Research

 (Reporting by Federica Mileo)
 ((Federica.mileo@thomsonreuters.com))