Berenberg reiterates Buy rating on JCDecaux stock, sees value in digitalisation

Published 24/07/2025, 09:28
Berenberg reiterates Buy rating on JCDecaux stock, sees value in digitalisation

Investing.com - Berenberg has reiterated its Buy rating on JCDecaux SA (EPA:DEC) with a price target of EUR22.00, highlighting the outdoor advertising company’s undervalued position.

The European investment bank notes that JCDecaux is currently trading at 12.3x FY2 P/E, representing a 46% discount to its historical average, raising questions about potential triggers for a valuation uplift.

Berenberg points out that while there are no short-term catalysts, the market does not fully understand the company’s digitalisation strategy, which could drive future growth.

The research firm emphasizes that management’s focus on profitable growth and cash-flow generation should restore investor confidence in the medium term.

JCDecaux offers an 8-9% free cash flow yield, which Berenberg indicates is at a discount to peers and below historical multiples, suggesting an attractive valuation opportunity for investors.

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