In economic recovery JPM prefers cheap and smaller European media stocks

Wolters Kluwer

11/07/2024 08:05

** In an economic recovery, J.P.Morgan prefers those
European media stocks that are cheap with improving earnings,
which could lead shares re-rating 
    ** As we move from economic contraction, "investors should
typically favor value, low quality, high risk, small caps and
rising momentum to maximize returns," says JPM
    ** "Contraction winners, quality names that are easy to
love, may struggle to outperform unless they have specific
catalysts or scope for upgrades. Recovery winners are harder to
own but are cheap," - JPM
    ** It cuts Publicis  PUBP.PA  and Wolters Kluwer  WLSNc.AS 
to "neutral" from "overweight" saying both have had extended
periods of stock over-performance 
    ** It raises ProSiebenSat.1  PSMGn.DE  and MFE  MFEB.MI  to
"overweight" from "neutral", saying both offer value at a time
when the improving macroeconomic situation could drive
re-ratings
    ** It likes Vivendi  VIV.PA , rates it "overweight" and
places it on "positive catalyst watch", as the company could
soon confirm its split into separate entities, unlocking value 
    ** Improving economic conditions in the UK and stabilizing
politics should boost London-listed ITV  ITV.L  and Pearson
 PSON.L , while Relx  REL.L  (all "overweight") is "the best AI
play in Europe"
    ** Music label UMG  UMG.AS , rated "overweight" should have
a solid H1 and step up margin expansion in H2, says JPM





 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))