Barclays announced on Tuesday that it had upgraded its recommendation on TF1 shares from 'underweight' to 'weight in line', with a price target raised from 6.5 to eight euros.
In a study devoted to European media, the broker points out that the French television group's shares stand out for their bullish profile, ranking third in the sector.
While the stock's downside potential is estimated at 24%, its upside potential stands at 77%, according to its analysts' calculations.
'TF1 still faces a number of question marks (structural problems in its core business, the new CEO's strategy, macroeconomic risks), they stress, but its recent underperformance versus M6 already incorporates some of these questions'.
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TF1 is a major player in the French audiovisual sector, active in the publishing, production and broadcasting of content. Net sales break down by activity as follows:
- Media (85.7%): a leading content offering and linear and digital advertising revenues, including 5 free-to-air channels (TF1, TMC, TFX, TF1 Séries Films and LCI), 4 theme channels (Ushuaia TV, Histoire TV, TV Breizh and Série Club), 3 on-demand content platforms (MYTF1, TFOU MAX and Salto) and the TF1 PUB advertising airtime sales house. The group also operates in music production and live shows with Muzeek One;
- Audiovisual production (14.3%; Newen Studios): production of content according to a differentiating multi-genre strategy (TV films, daily, fiction, distribution, animation, documentaries, etc.).
Net sales are distributed geographically as follows: France (85.7%), Continental Europe (11.4%) and other (2.9%).