RTL Group: UBS reiterates buy rating

(CercleFinance.com) - UBS reiterates its Buy rating on the stock, with an unchanged target price of E50, representing current upside potential of 52%, following the announcement of the sale of RTL Nederland.


"RTL announces the sale of RTL Nederland to DPG Media for a total cash consideration of E1.1 billion, implying 8.0x UBSe FY24E EBITA versus 5.5x Group EBITA", the broker says.

The capital gain from the transaction will be largely tax-free and will amount to around E0.8bn, the group says.

RTL Group says that the sale to DPG Media is the best strategic option for RTL Nederland and all its stakeholders. It is also looking forward to the strategic partnership with DPG Media, which will work closely together on European solutions in the areas of advertising and streaming technology, international advertising sales and joint content development.


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