Inexpensive, low in debt and with a yield, this world number three in advertising has all the advantages on paper. But the chaotic course of its title on the stock market reflects the fierce competition in the advertising market. One reason to bet on the case with a capped bonus.
Up 47% over the last three months, Publicis shares have made a good catch-up. In question, the hoped-for eradication of the virus with the rise of vaccination campaigns should strongly restart economic growth and with the advertising spending of large international groups. And this, at a time when some of them like Coca-Cola, Mondelez or Visa are preparing to launch calls for tenders on their entire budget with the aim of reducing the number of communication agencies. The competition promises to be fierce in a world that has already become very competitive with the rise of social networks like Facebook and Google and the acceleration of digitization. Publicis has strengths to showcase by being both very present in the United States and in the digital world, but has struggled for two years now to increase its turnover. Cautious in the last quarter of 2020 due to the reconfinement measures decided everywhere, the group nevertheless held up well during the summer period with an organic decrease of 5.6% of its revenues but the savings plan should allow it to exceed market expectations in terms of current operating profitability of around 14.3%. Little indebted with a gearing of 27% of equity and inexpensive with multiples lower than 10 times the estimated profits for this year and 2022, the group is one of the least valued stocks of the CAC 40 index. with a potential yield of 5%.
Reimbursed at 48 euros under condition.
Reason why it is not uninteresting to rediscover the file but by means of a capped bonus. The one selected is issued by Société Générale with a deadline of June 25, 2021 and two terminals located at 34 euros for the lowest and 48 euros for the highest. The certificate will be redeemed at maturity at its bonus level of 48 euros provided the share does not fall below the lower limit of 34 euros. Given its purchase price, it is likely to deliver an 11.1% gain in less than six months. For a controlled risk since in the worst case of a decline in the share to less than 34 euros, the certificate will still be reimbursed on the 25 June 2021 deadline at the price of Publicis. Be careful because the product does not give the right to the payment of dividends, nor to exposure to the continued rise of the security above the bonus level of 48 euros which constitutes the maximum redemption price.
Our advice: buy a Publicis capped bonus issued by Société Générale (code: FRSGE001A7F9); deadline: June 25, 2021; terminals: 34/48 euros; parity: 1 share for 1 certificate; price: 43.19 euros; amount: 1