Australia Nine Entertainment slips; UBS downgrades PT, rating

Nine Entertainment Holdings

04/02/2025 04:04

** Shares of Australia's Nine Entertainment  NEC.AX  drop
1.9% to A$1.285
    ** Analysts at UBS lower price target on the media firm to
A$1.45 from A$1.65 and rating to "neutral" from "buy"
    ** Brokerage says NEC remains in a difficult position with
rising content costs coupled with a highly challenging macro
advertising environment
    ** UBS does not see enough valuation support on the stock to
remain buyers of a potential cyclical recovery in value
    ** Lowers FY26 earnings forecast by 10% to account for a
more conservative view on the recovery in advertising market
recovery
    ** Brokerage expects co to report 1H25 net profit after tax
of A$86 mln ($53.33 mln) as compared to market consensus of A$93
mln
    ** Stock up 4.1% YTD
   
    ($1 = 1.6126 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))