MS raises concerns around HT&E's acquisition of Grant Broadcasters

ARN Media

20/06/2022 03:54

** Morgan Stanley raises concerns around HT&E's  HT1.AX 
equity value after its acquisition of Grant Broadcasters 
    ** Rather than reinventing itself, HT1 has become a larger
radio broadcaster, amplifying both its structural and cyclical
challenges - MS 
    ** MS cuts PT to A$1.00 from A$1.55; maintains rating at
"underweight" 
    ** MS says acquisition is EPS-accretive, but it sees risk to
co's profile
    ** Sees the AM/FM radio industry in the sunset stage of its
life cycle 
    ** Sees deterioration in radio advertising, expecting it
will turn negative in the second half of CY22
    ** After a big M&A deal, the probability of the acquirer
being a target is reduced - MS  
    ** MS says merger unlikely to drive higher growth for HT1
    ** Four of six analysts rate the stock "buy" or higher, one
"hold" and one "sell"; their median PT is A$2.50 – Refinitiv
Eikon data 
    ** Stock down 45.2% this year, as of last close 
    


 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))