Canaccord upbeat on new top boss at Australia's GTN; sees share price upside

Gtn

04/07/2023 01:00

** Analysts at Canaccord Genuity say the resignation of
chief executive Bill Yde from Australian advertising firm GTN
Ltd  GTN.AX  after serving the company for 26 years suggests the
market is ready for a new leader at the helm 
    ** Says there was a lack of meaningful price response to the
CEO's departure - who had been in position since 1997 - which
would otherwise be looked at as a negative catalyst for the
share price 
    ** "Even on materially downgraded earnings, the shares
continue to trade on very modest valuation multiples"- Canaccord
 
    ** GTN, in a separate statement, says revenue and earnings
with the FY23 outturn set to come in below market expectations
    ** Canaccord says new CEO offers the potential for a
revitalization of the business  
    ** Says in line with GTN's earnings view, lowered the
brokerage's FY23 estimate by 3% to A$176.7 mln ($117.82 mln) and
adjusted EBITDA to A$19.9 mln, 13% lower than previous A$23 mln
forecast 
    ** Canaccord cuts GTN's price target to A$0.65 per share
from A$0.80 per share 



($1 = 1.4997 Australian dollars)

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