Bernstein analyst Christophe Cherblanc has maintained their bullish stance on CAN stock, giving a Buy rating today.
Christophe Cherblanc has given his Buy rating due to a combination of factors that highlight Canal+’s potential for growth and value realization. The company is undergoing a significant transformation with a strategic acquisition in Africa expected to complete by 2025, which is anticipated to enhance its revenue and EBITA substantially. This acquisition, coupled with Canal+’s efforts to rebuild its investor base following its London listing, presents a unique opportunity for value creation, especially given the current undervaluation of its stock.
Moreover, Canal+ is making strides towards profitability in its French pay TV segment, which is nearing a break-even point. This progress is critical as it adds value to a major asset that traditional earnings-based valuations might overlook. Additionally, the company is focusing on improving cash conversion through a revised management incentive structure, balancing EBITA and cash flow from operations. These strategic moves, along with the anticipated synergies from the Multichoice acquisition, underpin Cherblanc’s optimistic outlook and justify the Buy rating.
According to TipRanks, Cherblanc is a 3-star analyst with an average return of 4.8% and a 55.68% success rate.
In another report released today, Barclays also maintained a Buy rating on the stock with a £2.65 price target.