MENU

Why Credit Suisse just downgraded Nine Entertainment Co Holdings Ltd

It’s been a stellar 12-months in terms of share price growth for media entertainment group Nine Entertainment Co Holdings Ltd (ASX: NEC) with today’s share price of $2.20 up 84% from its $1.19 share price at this time last year.

Credit Suisse has today downgraded Nine Entertainment Co from outperform to neutral and increased FY18 earnings estimates by 2.9% to “reflect the strong start by Nine to the 2018 ratings year”. It also raised FY19 estimates by 8.1%.

The Credit Suisse broker rose the share price target from $2.10 to $2.35 for Nine with a “high-level of sustainable market share” now factored into the price as well as reasonable valuations for digital assets.

Shares in Nine Entertainment zoomed to a 52-week high on March 19 when they reached $2.39 with media peer Macquarie Media Ltd (ASX: MRN) also at the top of its game, but peers Fairfax Media Limited (ASX: FXJ) and HT&E Ltd (ASX: HT1) have not fared well over the same period, with Fairfax slipping 1.8% to 68c per share at the time of writing, and HT&E also down 1% to $1.82.

Nine fared well in its half-year report, increasing NPAT by 55%, easily beating out rival Seven West Media Ltd (ASX: SWM).

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We're living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That's why at The Motley Fool we've been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We've found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.