First-half results were in line with Morgan Stanley’s expectations. No specific earnings guidance has been provided, although the company has indicated that at the beginning of the second half the radio advertising market was weak and third-quarter advertising revenue could be down in the mid-single digits.
A lift in the 2019 dividend pay-out to 60-80% from 40-60% is considered a positive. Underweight rating and $1.55 target maintained. Attractive industry view maintained.
Target price is $1.55.Current Price is $1.71. Difference: ($0.16) – (brackets indicate current price is over target). If HT1 meets the Morgan Stanley target it will return approximately -10% (excluding dividends, fees and charges – negative figures indicate an expected loss).