There are 36 ASX-listed media companies to choose from, several of which wish they could hide under a rock in their current state, but analysts have named these three players as potentially undervalued – signalling buy possibilities.
Southern Cross Media Group Ltd (ASX: SXL)
Media provider Southern Cross Media Group Ltd could be a decent buy at the current share price of $1.07 according to analysts.
Analyst reports last November flagged a buy opportunity at a price of $1.13.
However, the company, which owns and engages in broadcasting of content on free to air commercial radio, TV and online media platforms across Australia is no stranger to share price volatility – rising to highs of $1.42 this time last year with lows of $1.06 in November.
Analysts put its intrinsic value at $1.60 a share, but cited a higher risk on the stock due to uncertainty in the sector and negative growth prospects for Southern Cross itself in the short term.
It will be worth a look when Southern Cross Media Group announces its results for the half year ended December 31, 2017 on February 23.
WPP Aunz Ltd (ASX: WPP)
Marketing and communications service group WPP Aunz Ltd provides advertising and communications services for clients through channels including television, radio, print, outdoor and electronic forms.
The WPP share price is sitting at 94c per share on February 15, up slightly from its late November 2017 low of 78c, but is still 10% down on the $1.05 it was this time last year.
Analysts have named WPP Aunz Ltd as a potential buy at its current price, and although operating with a high-level of debt, the analysts cited WPP’s cash flow coverage as “adequate to meet debt obligations”, meaning its debt is being efficiently utilised.
WPP will announce its full year results for the period ending December 31, 2017 on February 23.
Definitely one to research, with focus on WPP’s lack of liquidity and current asset management practices suggested by experts.
APN Outdoor Group Ltd (ASX: APO)
Leading outdoor advertising operator APN Outdoor Group Ltd is priced at $4.26 on February 15, well down from its $5.82 share price this time last year.
APN Outdoor offers advertising products and services, including billboard advertising and digital advertising in transit, rail and airports.
Analysts have named the stock as less volatile than its wider market peers, with earnings forecast to increase by more than 30% in the next few years indicating an optimistic outlook which would likely feed into its share price.
APN is certainly one to watch as it announces its FY17 results on February 20.
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