attempts a rebound after yesterday’s correction

(Boursier.com) — Bouygues recovers 1.7% to 29.19 euros this Friday, after a fall of more than 4% yesterday, penalized by the downward revision of several objectives of its telecoms branch… If Bouygues Telecom has confirmed its 2024 objectives and its FCF target before WCR of around 600 ME in 2026 presented during the ‘Capital Markets Day’ in January 2021 (CMD), BT now expects Services turnover and 2026 EBITDAaL to show modest growth compared to 2023 and lower to the figures presented during the CMD. The group notably mentions an expected drop in ABPU Mobile and the impact in 2025 of the end of hedging on energy prices taken in 2020 and 2021.

BT also anticipates a reduction in its investment needs from 2025 compared to the trajectory presented during the CMD, thanks to the advance made in relation to the objectives in terms of coverage and quality delivered, and to the less progress rapid growth in Mobile data usage on the French market. Bouygues Telecom is therefore confident in its ability to generate significant cash flow in a sustainable manner…

Among the latest broker opinions, HSBC remains a buy but with an adjusted target price of 43 to 40 euros. Oddo BHF remains ‘neutral’ on the stock with a price target of 34 euros. The analyst sees no urgency to buy the stock aggressively, as the 2024 growth prospects, particularly in Telecom, where the competitive environment is deteriorating, could weigh on the stock’s performance in the short term…