UBS assesses traditional media names are conservatively priced and have leverage to current macro conditions while also likely to benefit from any improvement in inflation.
The impact of the pandemic is expected to drive material growth in traditional media in the June half while for FY22 there is potential for upside if strong macro conditions hold.
Nine Entertainment’s rating is upgraded to Buy from Neutral and the target is raised to $3.10 from $3.00.
Sector: Media.
Target price is $3.10.Current Price is $2.84. Difference: $0.26 – (brackets indicate current price is over target). If NEC meets the UBS target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
