Vivendi Universal "equal-weight," target price raised

04/01/04 - Morgan Stanley

LONDON, April 1 (New Ratings) - Analyst Sarah Simon of Morgan Stanley reiterates her "equal-weight" rating on Vivendi Universal (EAUG), while raising her estimates for the company. The target price has been raised from €16.70 to €20.00.

In a research note published this morning, the analyst mentions that the company’s target price has been raised on account of the improved valuation of its subsidiary, SFR-Cegetel. The analyst expresses her concern, however, regarding Vivendi Universal’s intention to run both media and telecom businesses. The EPS estimates for 2004 and 2005 have been raised from €0.71 to €0.91 and from €0.82 to €0.95, respectively.