Criteo (CRTO US Equity)
The reason for the outperformance today is the rumours of a potential bid from Publicis, following the fall out from Omnicom. Even though these rumours have been squashed to dampen down some euphoria, it appears these have been ignored.
Our analyst at Oscar Gruss had a quick look at the valuation metrics and believes with potential cost savings for PUB a bid could be in the region of $40 - $45/sh and this is being generous! Using an 18x Ebitda multiple the upside is roughly $3-6/sh and the downside $7-9/sh. So the conclusion is this could move higher. But is unlikely to reach the $55 level we saw in march. Risk/reward its not a great trade here.