Street View: What's the fair value of India's Zee, post Sony deal collapse?

Sun TV Network

23/01/2024 05:14

** India's Zee Entertainment  ZEE.NS  shares sink 10% on
collapse of its $10 billion merger with Sony India
    ** At least 5 analysts cut Zee to equivalent of "sell",
pulling down the avg rating to "hold" from "buy" - LSEG data
    ** Zee's fwd 12-months PE is 21.85, higher than Disney
 DIS.N 's 20.34, Sony's  6758.T  18.4 and Sun TV's  SUTV.NS 
12.8 -- LSEG data
    
    VALUATION RE-RATING
    ** Ambit Capital (Suspends rating, PT) says investors will
find it tough to ascertain Zee's fair value given uncertainties
on the operator, capital availability, macro headwinds
    ** CLSA ("sell"; PT 198) says Zee's PE will slump to 12x
levels seen prior to the Sony merger announcement, from 18x now
    ** Elara ("sell"; 170) expects broadcasting business 1-yr
fwd PE to drop to at least 10x
    ** Emkay ("sell"; 175) says stock can still see a sharp
negative reaction in the near term despite recent correction

 (Reporting by Sethuraman NR in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))