TF1 Stock: Shares Drop Over 7% Following Annual Results Decline
TF1's stock experienced a significant correction this Friday, February 13, falling more than 7% to 7.375 euros in the morning. The announcement of the 2025 annual results, showing a decline in revenue in a challenging advertising environment, has impacted the stock price, while Oddo BHF has lowered its price target on the stock.
Annual Financial Results Revealed
This Friday, the TF1 group unveiled its annual accounts for 2025, reporting a 2.5% decline in consolidated revenue to 2,297 million euros. This contraction is primarily due to the deterioration of the advertising market, a crucial resource for France's leading private audiovisual group. However, the group indicates that it has achieved the revised operational margin target for its activities and shows an increase in net financial surplus. The market's reaction was unequivocal: the stock lost 7.17% compared to the previous day's close, at 7.375 euros, bringing the weekly decline to 9.4%. Over three months, the drop has now reached 8.61%, while the annual performance is at -5.99%. The price has significantly fallen below its technical support at 7.80 euros and is now well below its 20, 50, and 200-day moving averages, respectively positioned at 8.03, 8.10, and 8.37 euros, indicating a clear deterioration in the short and medium-term trend.
Adjustment of Price Target by Oddo BHF
Alongside the results announcement, Oddo BHF revised its price target for TF1 downward, from 11.00 to 10.00 euros, while maintaining a 'neutral' rating. Despite this adjustment, the analyst's target suggests a potential revaluation of about 35% compared to the current price of 7.375 euros, reflecting a significant gap between market valuation and the fundamental estimation retained by the analyst. The sectoral context remains a decisive factor. The French advertising market, on which the group's business model heavily relies, continues to be under pressure, affecting revenue visibility. The stock's low beta of 0.17 indicates a historically limited sensitivity to general market fluctuations, but a monthly volatility of 5.64% shows increased nervousness in recent weeks around the stock, exacerbated by the day's publication.
