J.P Morgan says EU media AI opportunities underestimated, fear overblown

Relx

10/12/2025 09:36

** J.P Morgan notes European media stocks' underperformance compared to the Stoxx 600, and attributes it to investors focusing on misplaced concerns while overlooking opportunities

** It sees AI creating significant opportunities for these companies, not to cut production costs but to create more ambitious and high-value work

** The broker names RELX REL.L , Universal Music Group UMG.AS , Pearson PSON.L and Publicis PUBP.PA as its top picks in the sector,

** JPM notes Publicis has since 2019 posted 5.1% annual organic growth versus 1.7% for IPG, OMC, WPP and Havas combined, and its advantage in AI and data will be difficult to replicate

** It says although demand for AI music is limited, opportunity for UMG exists in remixes and personalized versions of popular songs, which will create licensing and revenue opportunities

** It cuts German-listed RTL RRTL.DE to "underweight" from "neutral", as it reflects the a worsening macro environment in Germany and France and expects cost savings to be accompanied by write-downs and restructuring, reducing RTL's capability to pay a special dividend

** J.P Morgan downgrades M6 MMTP.PA, which was down 3% at 0910 GMT, to "underweight", says it overpaid for the 2026 football world cup rights, which it believes will make it hard to reach break-even

COMPANY
RATING
OLD RATING
PT
OLD PT
Publicis
Overweight
Overweight
EUR 130
EUR 131
RELX
Overweight
Overweight
GBP 5,070
GBP 4,920
UMG
Overweight
Overweight
EUR 42
EUR 39
Pearson
Overweight
Overweight
GBP 1,440
GBP 1,330
RTL
Underweight
Neutral
EUR 34
EUR 38
M6
Underweight
Neutral
EUR 13
EUR 15.1

 (Reporting by Tristan Veyet and Leo Marchandon)

 ((Tristan.chabba@thomsonreuters.com))