Nine Entertainment has Broadcast Video on Demand (BVOD) to look forward to which should offset the structural pressures facing traditional TV, UBS asserts, and factors this into the base case, forecasting growth of 40% in FY22.
The broker also upgrades FY22 metro TV advertising market forecasts to an increase of 6.5%. Other themes for traditional media in FY22 include Facebook and Google deals as well as the digital contribution to earnings.
UBS retains a Buy rating and raises the target to $3.85 from $3.10.
Sector: Media.
Target price is $3.85.Current Price is $2.59. Difference: $1.26 – (brackets indicate current price is over target). If NEC meets the UBS target it will return approximately 33% (excluding dividends, fees and charges – negative figures indicate an expected loss).
