Kepler Chevreux initiates 'deeply discounted' Louis Hachette at 'buy'

Louis Hachette SA

13/05/2025 09:20

** Kepler Cheuvreux initiates coverage of Louis Hachette Group (LHG) ALHG.PA with a "buy" rating and a target price of EUR 1.80, citing the French publishing and travel retail company's "deep holding discount"

** The stock is up 6% at EUR 1.55 as of 0818 GMT

** Brokerage says it expects ""a solid financial delivery" from LHG, but its positive stance is primarily driven by potential short-term catalysts, such as the consolidation of Lagardere and the sale of its Travel Retail division

** LHG could gain full ownership of Lagardere in coming months with help of Vivendi, while the sale of its travel retail unit, "non-core but monetisable asset", could fast-track LHG's transformation into a pure media player, aligning with Bollore's broader strategy - Kepler

** Spun-off from Vivendi VIV.PA last December, LHG owns 66.53% of Lagardere LAGA.PA and 100% of Prisma Media with publishing making up 31% of its revenue being the third-largest consumer publisher, it adds

 (Reporting by Leo Marchandon)

 ((Leo.marchandon@thomsonreuters.com))