Media, Chemical Stocks Face Most Downside Potential in Stoxx 600

Europe’s biggest media and chemical stocks face the steepest decline in their share prices in the Stoxx 600 after outperforming YTD, according to Bloomberg data.

  • Based on consensus price targets for the next 12 months of all 19 sectors in the Stoxx 600, chemicals are expected to lose 2.7%, with media 2.6%
  • The sector with the biggest upside potential is resources; see separate story here
  • Chemicals (+23%) is the second-best performing sector YTD, with media (+19%) also outperforming the wider index (+17%)
  • 18 of 29 members of Stoxx 600 media index face declines, with Kabel Deutschland (-23%), Sky (-8.9%), Lagardere (-7.2%) having most downside
  • JCDecaux (+10%), UBM, Havas, WPP have largest upside; WPP is the most preferred stock in the sector; see March 17 story here
  • Among chemical stocks, BASF, Akzo Nobel and Clariant face the biggest downside, ranging from 9%-11%
  • NOTE: Kabel Deutschland has free float of ~15%; Vodafone owning 76.6%, Elliott Capital 13%: Bloomberg data
  • NOTE: Sky will pay GBP1.39b/yr in 3-yr Premier League rights agreement, an 83% increase over cost of existing contract; seen by some analysts as expensive

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