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Last updated: November 14, 2012 10:40 pm
The entertainment-to-telecoms conglomerate raised its adjusted net income target to €2.7bn for 2012. The shares rallied 4.7 per cent to €15.69 as investors digested the results.
However, some analysts were sceptical of investor optimism. “Headline beat not as big a deal as it seems,” said Polo Tang, analyst at UBS.
“Third quarter 2012 feels like a replay of third quarter 2011 – a big beat only for SFR [its domestic French telecoms business] to see notable downgrades in the fourth quarter as conditions worsened.”
The wider CAC 40 index slid 0.9 per cent to 3,400.02.
Reinhard Ploss, chief executive, added the group would still pay a dividend of €0.12 per share for 2012.
Its shares jumped 5.9 per cent to €5.55 against a 0.9 per cent fall in the Xetra Dax to 7,101.92.
In Brussels, KBC Group’s shares received a fillip after Deutsche Bank raised its rating on the lender’s stock from “hold” to “buy” and increased the price target from €20 to €27. The shares gained 2.8 per cent to €20.
Two upgrades for Spanish construction group ACS failed to cheer investors and its shares fell 3.3 per cent to €15.55. Credit Suisse raised its target price from €11 to €14 but kept a broader rating at “underperform”, while UBS increased its target price from €14 to €16.50.
A slew of downgrades for France’s EDF and Germany’s Eon sent shares in the utilities sector tumbling. Deutsche Bank cut its target price on EDF from €16.50 to €15. Its shares slid 4.8 per cent to €14.50.
Deutsche Bank, SocGen, Nomura and Credit Suisse all cut their target prices for Eon after a disappointing set of results, sending its shares down 3.1 per cent to €14.19.
European markets were firmly in negative territory, dragged down by concerns about the eurozone debt crisis as anti-austerity strikes swept across Europe.
The FTSE Eurofirst 300 fell 1 per cent to 1,088.43.
The Athens General index was the outlier, climbing 2.5 per cent to 794.72. On Tuesday the Greek government raised €4.06bn through a Treasury bill sale.
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