Re-assured

Research evidence excerpt

Re-assured

Equity Research

European Media

24 July 2026

HAVAS

1H26A results in line, FY26E guidance re-iterated. Early for

FY27E but we were afraid that the loss of Sanofi US Media

would impair organic; however, some wins should dilute the HAVAS.AS/HAVAS NA OVERWEIGHT Unchanged

impact. Havas' secret sauce is margin ramp up plus buybacks European Media NEUTRAL

delivering fastest EPS growth among agencies. OW. Unchanged

Price Target EUR 22.00

raised 2% from EUR 21.50

1H26A results were in line (organic 2.5%, consistent with our ests; revenues 0.1% ahead;

Price (23-Jul-26) EUR 18.30EBIT -1.0% miss; net income 2.5% beat). Company re-iterated FY26E guidance (2-3%

Potential Upside/Downside +20.2%organic, we estimate 2.5%; 13.2-13.5% EBIT margin, we estimate 13.4%). We upgrade our Source: Bloomberg, Barclays Research

forecasts by c. 4% at the EPS level (mostly lower net interests). Going into these results,

our biggest worry was the loss of Sanofi Media and the impact on 2027E. While it is a big

Market Cap (EUR mn) 1815

loss (c. 100bps on net sales), Havas has won other clients (Sketchers for instance is worth

Shares Outstanding (mn) 99.18c. 30bps on net sales) that mitigate the impact to a manageable level. We downgrade

Free Float (%) 43.67FY27E organic to 2.0% from 2.5%. Havas' most positive financial characteristic is their

52 Wk Avg Daily Volume (mn) 0.12028E margin target resulting in the highest annual increase in margins among agencies.

Dividend Yield (%) 4.37Adding a 2-3% annual buyback should result in low double digit EPS growth (assuming no

Return on Equity TTM (%) 10.24FX impact; they did 12% in FY25A and in 1H26A). On this basis, we view ~8x 2026E P/E as

Current BVPS (EUR) 18.25arguably too cheap on an absolute basis.