'Uncertain path to substantial value': MS assumes Vivendi with 'equal-weight'

Lagardere SA

15/09/2023 09:56

** Morgan Stanley assumes coverage of French media
conglomerate Vivendi  VIV.PA  with "equal-weight", saying the
stock's attractive long-term opportunity remains uncertain
    ** "Over time, portfolio simplification could unlock
significant value but path and timing are uncertain", it notes
    ** This will depend on outcomes around stakes in Lagardere
 LAGA.PA , telcos and UMG  UMG.AS , and whether the use of cash
makes the group more focused or more complicated, the broker
says
    ** Placing the majority of its value under controlled and
operated stakes "could create stronger and more coherent core
assets over the long term", but will likely carry some risks in
the short term - MS
    ** Vivendi's aquisition of Largardere  LAGA.PA , approved 
by the EU in June, forced it to sell its publishing group Editis
as well as its stake in Gala lifestyle magazine over antitrust
concerns

 (Reporting by Nathan Vifflin)
 ((nathan.vifflin@thomsonreuters.com))