BofA Securities double upgrades Zee Entertainment to 'buy'
"With the recent change of board members, improvement in disclosures (like balance sheet on a quarterly basis, Zee5 nos etc), coupled with reducing receivables/inventory should help to reduce these concerns," said the brokerage.
By ET Bureau |
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Mumbai: Bank of America Securities has double upgraded shares of Zee Entertainment Enterprises as it believes the firm has the potential to surprise given low expectations.
The brokerage has upgraded the stock to 'buy' from 'underperform' and raised target price to Rs 250 from Rs 138 on favourable risk-reward.
Bank of America Securities said Zee’s OTT app Zee5 is well placed to improve its traction leading to revenue improvement & loss reduction. The brokerage believes that revenues/EBITDA of Zee have bottomed out in the first quarter and from these levels, momentum should improve. The brokerage also said Zee's multiples had been depressed in the last 12-15 months on promoter group and balance sheet concerns.
"With the recent change of board members, improvement in disclosures (like balance sheet on a quarterly basis, Zee5 nos etc), coupled with reducing receivables/inventory should help to reduce these concerns," said the brokerage.
It has also increased FY22-FY23 EPS on Zee by 12-16% to factor in better-than-expected advertising and margin recovery.
The brokerage has upgraded the stock to 'buy' from 'underperform' and raised target price to Rs 250 from Rs 138 on favourable risk-reward.
Bank of America Securities said Zee’s OTT app Zee5 is well placed to improve its traction leading to revenue improvement & loss reduction. The brokerage believes that revenues/EBITDA of Zee have bottomed out in the first quarter and from these levels, momentum should improve. The brokerage also said Zee's multiples had been depressed in the last 12-15 months on promoter group and balance sheet concerns.
"With the recent change of board members, improvement in disclosures (like balance sheet on a quarterly basis, Zee5 nos etc), coupled with reducing receivables/inventory should help to reduce these concerns," said the brokerage.
It has also increased FY22-FY23 EPS on Zee by 12-16% to factor in better-than-expected advertising and margin recovery.
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