Kepler Cheuvreux has re‑rated European media stocks after a bruising 2025, pushing the sector to its widest relative discount in a decade. The Stoxx Europe 600 flagged the group as the weakest performer, with valuation derating rather than earnings cuts keeping fundamentals largely intact for investors seeking value in 2026.

O’Shea attributes the sell‑off to fears of generative AI disruption, noting the sector now carries the second‑largest discount between forward P/E multiples and the ten‑year median. He upgraded Canal+ and Havas to Hold, raised target prices, and moved M6 to the least‑preferred list amid a weak French TV ad market and costly FIFA rights.

Looking ahead, Kepler forecasts 2026 to be broadly supportive, buoyed by ad‑rich events like the FIFA World Cup, U.S. mid‑term elections, and the Winter Olympics in Cortina. Yet pricing pressure in linear TV, especially in France and the U.K., could erode gains, underscoring a preference for firms with market‑share gains such as Publicis.