Oct 11th 2013 - Edison Investment Research today published a report on Entertainment One (ETO.L, LSE:ETO, LON:ETO) entitled "Hidden Jewels". In summary, the report says:
Entertainment One (eOne) is a focused play on the growing demand for entertainment content. Its library is worth well over $650m (£410m) and represents more than half the £752m EV; the remaining EV is only 1.2x the annual investment in content, which we estimate should achieve an IRR of c 20%. Based on the recent trading update, we expect H1 normalised EPS to increase by 58%, helped by the successful integration of Alliance Films. Analysis of the business model underpins our expectation of strong positive cash flows from FY15, and both a peer group comparison and DCF point to a share price over 273p, 26% above the current level.
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