Buy tech sell-off, Wedbush’s Ives says: ’this is a 1996 moment, not 1999’
On Friday, Deutsche Bank (ETR:DBKGn) initiated coverage on Canal+ SA (CAN:LN), issuing a Buy rating and setting a price target of GBP2.40. The bank’s analysts highlighted Canal+’s evolution from a French pay-TV channel to a global media player with operations in over 50 countries and its successful expansion into video streaming platforms.
Canal+ reported revenues of EUR 6.45 billion in 2024 and currently boasts approximately 27 million subscribers, along with a 5% EBIT margin. Deutsche Bank’s analysts project a 3% compound annual growth rate (CAGR) in revenue from 2025 to 2027 and anticipate improving economics for the company. These expectations are supported by a survey of the French video market, which demonstrated high engagement and stable viewership.
The bank forecasts an adjusted earnings per share (EPS) CAGR of 11% between 2025 and 2027. The analysts believe that Canal+’s stock valuation is attractive when compared to its peers and predict that as the company enhances its cash flow generation in the current year, a re-rating of the stock is likely.
Canal+’s strong financial position is seen as an asset, potentially enabling strategic mergers and acquisitions. The anticipated acquisition of MultiChoice (JO:MCGJ), which is expected to be completed in 2025, could significantly increase Canal+’s subscriber base to over 40 million.
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