Morningstar expects Aussie housing market dip to weigh on Nine Entertainment

Domain Holdings Australia

21/12/2022 05:10

** Morningstar sees near-term challenges for Australian
media firm Nine Entertainment Ltd  NEC.AX  due to alarming
volatility in the country's housing market  
    ** Brokerage reduces fair value estimate (FVE) for NEC by
13% to A$2.80 after recently downgrading co's property listing
unit Domain Holdings  DHG.AX  
    ** Brokerage lowers Domain's FVE by 44% to A$2.30 on reduced
revenue forecast and DHG's inability to take meaningful market
share     
    ** NEC shares up much as 2.7% to A$1.910, their biggest pct
gain since Dec. 1 
    ** Morningstar sees NEC's revenue for FY23 and FY24 to grow
by 3.3% and 4.2% to A$2.80 bln ($1.87 bln) and A$2.92 bln ($1.95
bln), respectively
    ** "Continues to see appeal in Nine shares, trading at a 33%
discount to revised fair value estimate," - Morningstar
    ** Says reduction of Domain's FVE mainly due to 4% decline
in revenue outlook for FY23 
    ** NEC's stock down nearly 36% this year as of last close 
($1 = 1.4984 Australian dollars)
 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com))