JCDecaux recorded one of the biggest rises in the SBF 120 index in Paris on Monday, in the wake of a buy recommendation from Berenberg, which highlights the value of investing in the outdoor advertising sector.
The analyst began to monitor JCDecaux this morning with a buy recommendation and a target price of €22, along with the coverage of Germany's Ströer (also buy, with a target price of €71).
Outdoor advertising is now an attractive segment, supported by favorable structural trends such as the digitization of billboards and the growing concentration of populations in urban areas, the broker said.
Berenberg says that the outdoor advertising (OOH) market grew at an average annual rate of 4% between 2000 and 2024, with only three years of decline due to the financial crisis and the Covid pandemic.
According to its forecasts, growth in the sector is expected to remain at an average single-digit rate in the medium term.
The professional also highlights the ongoing digital transformation in the sector, believing that JCDecaux and Ströer are both ideally positioned to benefit from this momentum, with expanding digital portfolios and solid fundamentals.
Following these comments, the French group's share price rose 0.9% around 2:15 p.m., after gaining as much as 3.2% this morning, while the SBF 120 lost around 0.5%, allowing it to return to positive territory (+0.6%) since the beginning of the year.
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JCDECAUX SE is No. 1 in the world for outdoor communication. Net sales break down by type of surface as follows:
- urban furniture (50.8%; No. 1 worldwide): sales of advertising space in malls and on urban furniture bus shelters, automated public toilets, newspaper kiosks, signboards, etc.; 629,737 advertising surfaces marketed at the end of 2024), sale, leasing, and maintenance of urban furnishings. The group is also No. 1 worldwide for self-service bicycle rentals;
- transportation vehicles and terminals (35.3%; No. 1 worldwide): sales of advertising space in 157 airports, on and in buses, subways, trains, tramways, train stations, and transit terminals. At the end of 2024, the group sold 340,848 advertising surfaces;
- traditional and lighted billboards (13.9%; No. 1 in Europe): 121,226 advertising surfaces marketed.
Net sales are distributed geographically as follows: France (17.7%), the United Kingdom (11%), Europe (29.4%), Asia/Pacific (21.1%), North America (7.7%) and other (13.1%).
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