Publishing & Broadcasting (PBL) Share Trading Recommendation

Submitted by Craig Strzelecki on 22 February, 2007 - 22:44

Publishing & Broadcasting (PBL) have a Neutral 1 share trading recommendation and a price target of $23 per share from analyst UBS. PBL Media has agreed to acquire Nine Perth from Sunraysia for $136.4m, subject to STV shareholder approval. With Eva Presser and WIN accounting for about 92% of the register, the analyst expect this approval should be a formality. Given the PBL Media structure, they expect PBL will be required to inject $15-20m in equity into the JV. For the past 4 halves, TV ad revenue in Perth has grown more slowly than the market overall. From a Nine Network perspective, Perth's All People ratings share in 2006 was 31.3% cf 38% average of Sydney/Melb/Brisbane. Revenue share in the December half is estimated at 30.2% cf 34.4% for Nine east coast while the group reported an operating loss in FY 06 with a further loss expected in H1 07. They expect PBL will be focussing on all three markets. Driven by its east coast processes and approach and the resultant more national proposition. Incremental growth in share [UBSe to 32% by FY10] and margins [to 15%] will bring the acquisition multiple down to <10x. The analysts' FY 08 forecasts have been cut by 0.2%. No change to our valuation or sum of the parts derived target price of $23 which incorporates $5.36 for Macau.

Publishing & Broadcasting Limited is listed on the Australian Stock Exchange (ASX) under stock code PBL. You can view their investor website here. PBL was listed on the ASX on 4 June, 1987. James Packer is the Executive Chairman and the managing director is John Alexander. Publishing and Broadcasting (PBL) is involved in gaming and entertainment; television production and broadcasting; magazine publishing and distribution; investments in the internet, pay television; telecommunication and other media and entertainment sectors. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade PBL. Check your charts and good luck with your share trading!

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