Seven West Media: Jefferies raises PT after Prime Media deal

PRT

01/11/2021 22:23

** Jefferies hikes PT on Australia's Seven West Media
 SWM.AX  after the television and newspaper firm signed a deal
on Monday to acquire its regional affiliate Prime Media Group
 PRT.AX   urn:newsml:reuters.com:*:nFWN2RR036
    ** Brokerage upgrades EPS forecasts for SWM by 8% in FY22
and 14% in FY23
    ** Jefferies raises PT to A$0.76 from A$0.75, maintains
"buy" rating
    ** "Through the PRT acquisition, SWM will gain access to
regional markets and reach over 90% of the Australian population
through its platforms," Jefferies analysts say in a note
    ** Brokerage assumes SWM will resume its dividend payment in
FY22 given less restrictive debt covenants after co refinanced
its debt facility and upsized it to A$600 mln
    ** Six of eight analysts rate the stock "buy" or higher, and
two "hold"; their median PT is A$0.76 – Refinitiv Eikon data 
    ** Up to Monday's close, stock had risen ~58% this year
    


 (Reporting by Riya Sharma in Bengaluru)
 ((Riya.Sharma@thomsonreuters.com;))