RTL Group: Barclays cuts target price
(CercleFinance.com) - Barclays Capital maintains its "equal weight" rating on RTL Group, but cuts its target price for the share to 65 euros after the European broadcaster reported third-quarter results that were below expectations yesterday.
"One of RTL's historical strengths (a stable German market) seems to fade with both broadcasters seemingly engaging in a local content tussle and insisting on going alone on subscription video-on-demand (SVOD) for the time being," the broker said.
"RTL has its attractions (7% dividend yield, leading content producer, growing platform revenues, fast-growing digital assets), but we estimate that pivoting away from linear television to total video will not translate into much growth for another year," it wrote in a note.
"2018 should therefore be the sixth year of little growth, and 2019 is likely to offer a similar profile," BarCap added.
The shares fell by over 7% yesterday, after the quarterly report was published. They are currently down over 1% today.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"One of RTL's historical strengths (a stable German market) seems to fade with both broadcasters seemingly engaging in a local content tussle and insisting on going alone on subscription video-on-demand (SVOD) for the time being," the broker said.
"RTL has its attractions (7% dividend yield, leading content producer, growing platform revenues, fast-growing digital assets), but we estimate that pivoting away from linear television to total video will not translate into much growth for another year," it wrote in a note.
"2018 should therefore be the sixth year of little growth, and 2019 is likely to offer a similar profile," BarCap added.
The shares fell by over 7% yesterday, after the quarterly report was published. They are currently down over 1% today.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.