Berenberg Starts Bouygues at Buy on SFR Acquisition Deal

08:46 AM EDT, 10/01/2026 (MT Newswires) -- Berenberg started Bouygues (EN.PA) with a buy rating, saying that the telecommunications unit's SFR deal will provide 30% accretion to its cash flow, with the upcoming capital markets day of Equans as a further catalyst. "The Equans capital markets day (CMD) in February 2027 and ongoing news on the SFR deal should provide catalysts for the shares. Medium-term cash flow will be depressed by restructuring costs, but a growing dividend looks safe, and when the integration process is over, both long-term cash flow and ROCE should be substantially higher," analysts said Thursday. The research firm added that the deal to acquire SFR gives Bouygues Telecom an opportunity to grow its revenue by 50%, restore market growth and realize synergies. Analysts also expect the deal to double the conglomerate's unit's EBITDAaL by 2035 and that EBITDAaL minus capital expenditure could nearly quadruple. Berenberg set its price target at 55 euros, which it said implies an upside of nearly 30% and a yield of more than 5%.