CLSA bullish on media cos as ad revenues recover

Mumbai: CLSA has raised its share price targets on media companies citing a rapid recovery in advertising revenues post Covid-19. The price targets, which have been increased in the range of 3 per cent to 80 per cent, could fetch returns between 24 per cent and 60 per cent in these stocks.“Zee and Sun ad recovery are at 80 per cent of pre-Covid-19 levels, while Hindi print media companies DB Corp and Jagran led by non-metro presence are seeing a comparable recovery,” said CLSA in a client note. The brokerage’s top pick in the sector is Zee Entertainment Enterprises. CLSA said Zee’s valuation is compelling at 12 times estimated price-to-earnings (PE) ratio for FY22, which is a 60 per cent discount to the 10-year average.78246417“Our media coverage/businesses are resilient and are not only seeing a rapid recovery in revenues, cost savings but are backed by strong, zero-debt, net-cash balance sheets,” said CLSA.

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