India's Sun TV Network hits 2-wk low; HSBC cuts PT on declining viewership woes

Sun TV Network

30/11/2018 08:05

** Shares of Sun TV Network Ltd  SUTV.NS  fall as much as
4.36 pct to 589.4 rupees, their lowest in a fortnight
    ** HSBC Global Research cuts Sun TV's price target to 703
rupees from 855 rupees; maintains "hold" rating
    ** Biggest worry is co's constant declining viewership
share; new channel also not getting much traction, HSBC said in
a note
    ** Higher investment required for co to enter new markets as
announced along with investment in digital platform - HSBC
    ** Upcoming general elections will also likely create
uncertainty over advertising with majority of TV channels owned
by political parties in South India - HSBC
    ** 19 of 24 brokerages covering stock have "buy" or
equivalent rating, three have "hold" while two rated stock a
"sell"; median price target of 841 rupees - Refinitiv data
    ** Over 2.4 mln shares changed hands vs 30-day avg of about
1.6 mln shares
    ** Stock posts biggest intra-day pct drop since Nov 5
    ** Co has forward PE of 17.49, slightly above sector median
of 17.27

 ((arnab.paul@thomsonreuters.com@reuters.net))