Stifel initiates coverage of Believe, a French music company providing digital distribution services to artists, with a 'buy' recommendation and a price target of 18.5 euros, representing a potential upside of 71%.

'Believe, which benefits from the strong dynamics of the music streaming market, has one of the strongest growth rates in the sector thanks to its positioning on digital and its proactive investment strategy in emerging regions, particularly Asia', it points out.

Although the company is currently making losses, the broker notes that it is generating positive free cash flow and believes that it 'should gradually see its profitability improve as its business model converges with that of the majors'.

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