Vivendi (>> Vivendi) shares rose on Tuesday after HSBC upgraded its rating on the media giant, led by billionaire Vincent Bollore (>> Bolloré), to "buy" from "hold".
Vivendi shares were up 1.2 percent in early session trading, the top performing stock on France's benchmark CAC-40 index <.FCHI>, which was flat.
"Our new rating on Vivendi shares reflects our expectation that the operational outlook is strengthening and that the structure of the investment portfolio of the group could be clarified in the coming quarters," wrote the HSBC analysts.
"We expect each business to deliver better operational key performance indicators (KPIs) in the coming quarters, delivering on management's strategy," they added.
(Reporting by Sudip Kar-Gupta; Editing by Mathieu Rosemain)