** J.P.Morgan upgrades French construction-to-telecoms group Bouygues 
EN to “Overweight” from “Neutral,” saying its strategy is now clearer, and near-term fibre JV consolidation has been ruled out, addressing previous concerns around debt and cash flow
** The broker highlights stronger margin prospects for Equans, Bouygues’ technical services arm acquired in 2021, thanks to favourable market conditions such as the energy transition and infrastructure upgrades
** It raises Bouygues’ PT by 29% to 49 euros ($57.36), with Equans now valued more highly and telecom sector changes not yet factored in
** Reports of intensified M&A talks in French telecom, including SFR’s restructuring paving the way for possible deals by year-end, could further benefit Bouygues, whose telecom division is a major value driver, it says
** Shares of Bouygues are down 2.9% to 35.9 euros by 07:48 GMT, broadly following France’s CAC40 
PX1 index drop after French PM François Bayrou’s call for a confidence vote
** However, J.P.Morgan “do not expect this to alter Telco M&A prospects”
** Out of nine analysts that cover Bouygues, two rate it “Strong Buy” or “Buy”, and six rate it “Hold” – data compiled by LSEG
($1 = 0.8542 euros)