WPP, JCDecaux, Eutelsat Among Exane’s Media Top Picks for 2015

WPP, JCDecaux, Wolters Kluwer, Eutelsat top picks in media for their smart use of cash, improving returns, valuations, Exane says in note.

  • Exane says avoid Reed Elsevier, RTL; says valuations are high relative profit growth potential
    • Raises TF1 to outperform from neutral on low valuation, potential; says co. would benefit from any boost to consumer spending; shrs up 6% today
    • Says media still offers "fundamental appeal" with solid EPS growth, "healthy returns"
    • Sector beat market in 2014, after recovering in 2H from difficult 1H; now trades at 20% premium to mkt
    • Still sees ~3.5% growth in global ad spend in 2015
    • In small caps, Rightmove, Criteo still "exciting" growth investments; Daily Mail is "cheap"
  • NOTE Jan 6: SXMP Rises in 2014 for 3rd Year; Reed Elsevier Leads Gainers