Australia's Southern Cross Media could consider options for TV portfolio -MS

Paramount Global

15/03/2021 23:40

** Morgan Stanley says Australia's Southern Cross Media
 SXL.AX  may be at a disadvantage when negotiating a new TV
program supply deal with ViacomCBS'  VIACA.O  Ten Network (TEN)
    ** "We see lower earnings + higher risk as SXL starts talks
for a new cornerstone TV program supply deal with TEN," MS
analysts write
    ** Broadcaster Nine Entertainment  NEC.AX  said last week it
will not extend its regional television affiliation agreement
with SXL beyond June 30  urn:newsml:reuters.com:*:nL4N2L95FT
    ** "We believe it could make sense to consider options for
the remainder of the TV portfolio," MS says
    ** Maintains "underweight" rating and A$1.40 price target
    ** Two of five brokerages rate the stock "buy" or higher,
one "hold" and two "sell"; median PT is A$2.50 - Refinitiv data
    ** Up to Monday's close, stock had fallen 5.4% this year

 (Reporting by Shashwat Awasthi in Bengaluru)
 ((Shashwat.Awasthi@thomsonreuters.com))