Jefferies sees earnings downside for HT&E as recession fears weigh

ARN Media

06/07/2022 21:06

** Jefferies cuts near-term earnings forecast for
Australia's media and entertainment firm HT&E  HT1.AX  as
looming risks of a recession and subsequent stagflation takes a
hit on the ad market
    ** Brokerage trims HT1's revenue estimates for FY22, FY23,
and FY24 by 1%, 4%, and 5% respectively   
    ** Also cuts co's EPS forecasts for FY22, FY23, and FY24 by
6%, 10%, and 12% respectively 
    ** Analysts see deteriorating consumer spending leading to
HT1's advertiser ad spend budget cuts across the rest of 2022
and 2023    
    ** Jefferies cuts price target on HT1 to A$1.90 from A$2.50,
citing materially lower comparable multiples
    ** "Notwithstanding stock price decline, in a rampant
inflation and rate cycle with high household debt, there is no
obvious reason to be positive outside of valuation" - Jefferies
    ** Five of seven analysts rate the stock "buy" or higher,
one "hold", and one "sell"; median PT is A$1.90– Refinitiv data
    ** HT1 down 50% this year, as of last close

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))