ProSiebenSat.1: shares advance on analyst's comments.
(CercleFinance.com) - Shares in German commercial broadcaster ProSiebenSat.
1 are up around 1 percent on Friday, following positive comments from an analyst.
In a research note issued this morning, Barclays reiterated its "overweight" rating on the shares with a target price of 45 euros, saying that the stock discount is "too cheap" for the growth offered.
The broker indeed believes that the group offers the "best of both worlds," that is to say cash flow generation and growth.
While German broadcasting has been a steady cash flow generating business to date - which is likely to continue over the next couple of years - digital has been a high growth business both organically and through M&A, Barclays explained.
Barclays - which targets a 9.4% growth rate in EPS pre M&A over 2016-2018 while ProSiebenSat.1 only aims at 8.6% - therefore thinks that the stock's discount to the market is too cheap for the growth its offers.
The shares - which have risen by almost 5 percent since the beginning of the year - are currently up 0.9 percent at 38.5 euros.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
1 are up around 1 percent on Friday, following positive comments from an analyst.
In a research note issued this morning, Barclays reiterated its "overweight" rating on the shares with a target price of 45 euros, saying that the stock discount is "too cheap" for the growth offered.
The broker indeed believes that the group offers the "best of both worlds," that is to say cash flow generation and growth.
While German broadcasting has been a steady cash flow generating business to date - which is likely to continue over the next couple of years - digital has been a high growth business both organically and through M&A, Barclays explained.
Barclays - which targets a 9.4% growth rate in EPS pre M&A over 2016-2018 while ProSiebenSat.1 only aims at 8.6% - therefore thinks that the stock's discount to the market is too cheap for the growth its offers.
The shares - which have risen by almost 5 percent since the beginning of the year - are currently up 0.9 percent at 38.5 euros.
Copyright (c) 2017 CercleFinance.com. All rights reserved.