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Canal+ shares fell by 19% to 191.10 pence after UBS Group AG issued a neutral rating, citing risks from its acquisition of MultiChoice, which is experiencing declining profits in South Africa. This contrasts with CIC Market Solutions' optimistic target of 450 pence, suggesting the market has already accounted for these risks. Following Canal+'s decline, the combined value of Vivendi and its spinoffs dropped 10% from its standalone price on December 13, according to Bloomberg.
Canal+ shares fell by as much as 19% to 191.10 pence after UBS initiated coverage with a neutral rating and a price target of 240 pence, citing concerns over the company's acquisition of MultiChoice amid declining profits and cash flow losses. This contrasts sharply with CIC Market Solutions, which predicts a rise to 450 pence, suggesting the market has already accounted for the associated risks. Following Canal+'s London debut, the combined value of Vivendi and its spinoffs dropped 10% from its standalone price in December.
Canal+ shares fell by as much as 19% to 191.10 pence after UBS initiated coverage with a neutral rating and a price target of 240 pence, citing concerns over the company's acquisition of MultiChoice amid declining profits and cash flow losses. This outlook contrasts sharply with CIC Market Solutions, which predicts a rise to 450 pence, suggesting the market has already accounted for the associated risks. Following Canal+'s London debut, the combined value of Vivendi and its spinoffs dropped 10% from its standalone price in December.
European stocks closed slightly higher as investors awaited the U.S. Federal Reserve's interest rate decision. Renault shares surged 5.39% amid merger talks with Nissan and Honda, while U.K. inflation rose to 2.6%, dampening hopes for a rate cut from the Bank of England. The cost of renting in London jumped 11.6%, marking the fastest rise on record.
UBS has revised its price target for Vivendi to €3, down from €10, following the company's split. The analyst maintains a buy recommendation, citing an attractive risk/reward ratio for the shares. Investors are advised to consult a professional before making investment decisions.
UBS has revised its price target for Vivendi to €3, down from €10, following the company's recent split. The analyst maintains a buy recommendation, citing an attractive risk/reward ratio for the shares. Investors are advised to consult professionals before making investment decisions.
UBS has lowered its target for Vivendi following its recent split. BOURSORAMA, acting solely as a distribution channel, emphasizes that the analysis is provided "as is" without any warranties, and the opinions expressed do not reflect its views. The institution maintains a conflict of interest management policy to ensure objectivity in its investment recommendations.
European stocks opened mixed as German Chancellor Olaf Scholz lost a confidence vote, paving the way for early elections in February amid economic struggles. Meanwhile, Royal Mail's parent company is set to be sold to Czech billionaire Daniel Kretinsky, and shares of Canal+ fell 15.7% on its London debut. Confidence among U.K. manufacturers has dropped to a yearly low due to rising costs and economic uncertainty.
Canal+ is set to debut on the London Stock Exchange, marking the largest new listing in two years, with a projected market value of €6bn. The move, seen as a vote of confidence in the UK capital markets, comes as Vivendi spins off its media assets, including StudioCanal. The listing aims to bolster Canal+'s ambitions to compete with major streaming services like Netflix and Disney+.
Vivendi SE's plan to split into four companies is facing significant challenges, diminishing investor expectations. Dominant shareholder Vincent Bolloré's strategy to separate assets, including Canal+, Havas, and Louis Hachette, risks solidifying his control amid the turmoil.
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