(BFM Stock Exchange) – The specialist in the external display falls on the Paris Stock Exchange after indicating that his income will experience an increase in a low figure in the second quarter. Which is too fair in the eyes of the market.

JCDecaux is definitely an action subscribed to volatility after the publication of results. The publications of the external display specialist rarely leave the market indifferent and are often followed by very strong increases or heavy stock markets.

This Wednesday is the second option that prevails. The JCDecaux action dives 6.5% around 11:05 a.m. accusing the highest drop in the SBF 120, the extended index of the Paris Stock Exchange.

The fall in action occurs after the publication of the company’s activity in the first quarter. More than the start of the year of JCDecaux, it is the indications for the second quarter that tense investors.

The company founded by Jean-Claude Decaux, the inventor of the shelter, said to wait for this period for “Low Single Digit” growth of its turnover, in comparable data, which can be roughly translated by an increase of 1% to 3%. However, analysts awaited an average increase in income of 4% in comparable data for this period, according to a consensus cited by ODDO BHF.

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A demanding comparison base

“It is the small traditional game with JCDecaux, there is an excess of reaction to the increase as down compared to the forecasts for the current quarter. There the sanction seems exaggerated. Recall that the company had a heavy base of comparison in the second quarter 2024”, underlines the design office.

In the second quarter of 2024, JCDecaux had seen its growth reach 15.4% in comparable data, the group then benefiting at full tube from two major sporting events, synonyms for purchases of additional advertising space: the Euro 2024 football and the Olympic and Paralympic Games in Paris.

JCDecaux delivered these prospects after having published a turnover of 858 million euros in the first quarter, up 7% in published data and 5.5% in comparable data, that is to say excluding changes in exchange and perimeter. Growth exceeds expectations of a hair, housed at 5.3% in comparable data, and proved to be fairly homogeneous on all the segments of the company.

At the end of the publication, Oddo BHF reiterated its recommendation to “neutral” on the action of the company. If the enhancement of the title, at around 11.6 times the benefits expected in 2025, has become “much more reasonable”, the broker needs a “more frank recovery of the Chinese market” while “advertising visibility” remains “weak”.

“However, the fundamentals are still good, the group is more solid than it was before the Cavid crisis with a more flexible model,” adds Oddo BHF. “This results in a return of the dividend, at a higher level than expected,” continues the design office. “A drop in the title would be an opportunity to buy to position itself on these fundamentals,” he advises.