At first glance, there was a small miss to UBS estimates at the EBITDA line in the FY21 results. TV revenue grew 10% while publishing revenue fell -3%. Domain revenue was up 11% and Stan up 29%.
Early trading in the first quarter signals solid growth across the businesses and appears to be ahead of estimates in absolute terms, UBS observes. The broker currently forecasts flat revenue in FY22.
Buy rating and $3.10 target unchanged.
Sector: Media.
Target price is $3.10.Current Price is $2.68. Difference: $0.42 – (brackets indicate current price is over target). If NEC meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
