NSEBrokerage Rating Target price UBS Neutral 190 Citi Sell 137 CLSA Underperform 175 Elara Buy 180 Motilal Oswal Neutral 169Zee Entertainment Enterprises shares rose in early trade on May 21, days after the company's January to March 2024 period results beat Street estimates.
One brokerage upgraded its rating and target price on the stock, another upgraded the rating but kept the target price unchanged and another cut the target price.
Zee5 posted a healthy operational show, with revenue growth of 24% YoY in FY24, as digital continued to gain traction.
“We expect the recovery to remain gradual given the continued weakness in the rural segment and IPL in 1QFY25.
The analyst would watch out for strategic initiatives.Zee shares traded 2.38% higher at ₹144.05 on BSE at 11:10 am.
NSE
Brokerage Rating Target price UBS Neutral 190 Citi Sell 137 CLSA Underperform 175 Elara Buy 180 Motilal Oswal Neutral 169
Zee Entertainment Enterprises shares rose in early trade on May 21, days after the company's January to March 2024 period results beat Street estimates. One brokerage upgraded its rating and target price on the stock, another upgraded the rating but kept the target price unchanged and another cut the target price. Let's find out why.Zee posted a consolidated net profit of ₹13.35 crore in the March quarter as against a net loss of ₹196.03 crore in the same period of the previous fiscal. Revenue for the quarter under review grew almost 3% year-on-year to ₹2,169 crore.The growth was aided by domestic advertising revenue rising 10.6% year-on-year due to continued recovery in the macro advertising environment and spending pickup by FMCG clients. Subscription revenue growth was driven by a pick-up in linear subscriptions, the company said in an investor presentation.After the results were announced, CLSA upgraded its call to underperform from sell and raised the target price to ₹175. This implies the brokerage sees an almost 25% upside in the stock from the closing price of May 18.CLSA said the numbers were encouraging and that the firm is revisiting costs and a subdued margin of 9.6% for the quarter under review is transitory. It noted that the company has added an aspirational target of an 18-20% EBITDA margin by FY26.Elara Securities India also upgraded its rating on Zee to buy but kept the target price unchanged at ₹180. According to them, ad revenue growth in the first quarter of FY25 may be muted because of IPL but it could pick up pace due to a positive impact from higher FMCG ad spend and the festival season.“Expect ad revenue/subscription revenue to see CAGRs of 5.5%/6.0% in FY24-26E, respectively. Zee5 posted a healthy operational show, with revenue growth of 24% YoY in FY24, as digital continued to gain traction. Continued momentum in Zee5’s revenue growth may augur well, as investments have largely peaked out,” it said.UBS, meanwhile, has a neutral call on the stock with a target price of ₹190 as it noted the media firm saw a healthy recovery in a non-seasonal quarter.They also highlighted that the management seems confident of reaching the 18-20% EBITDA margin target by FY26 and that it expects sustained growth in subscription revenues and Zee5.Motilal Oswal also has a neutral call on Zee shares with a target price of ₹160. It said there seems to be a resurgence in ad revenue due to increased spending by FMCG companies. “We expect the recovery to remain gradual given the continued weakness in the rural segment and IPL in 1QFY25. The outlook on subscription revenue is expected to improve with the implementation of NTO 3.0. The improvement in profitability in ZEE5 is positive after remaining a drag for a long period.”Citi, on the other hand, gave Zee a sell rating and cut the target price to ₹137 even as it noted the company has guided towards YoY margin expansion in FY25. The analyst would watch out for strategic initiatives.Zee shares traded 2.38% higher at ₹144.05 on BSE at 11:10 am.
