Stifel initiates coverage of Bouygues with a 'neutral' position and a price target of 32 euros, seeing the conglomerate as 'complex, underperforming and requiring a restart to crystallize value'.

'The stock could potentially benefit from a turning point in the rates cycle. In the longer term, however, the group will need a significant reorganization of its structure and a cultural renewal', believes the broker.

Stifel considers Bouygues to be well valued, but believes that 'margin improvements, as well as a removal of its holding and strategy discounts could potentially unlock some additional value at a later stage'.

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