OSK reaffirms 'buy' call on Media Prima
KUALA LUMPUR: OSK Research Sdn Bhd has reaffirmed its "buy" call on Media Prima Bhd despite anticipating slow advertising expenditure (adex) this year.
OSK Research said it was "more conservative" on Media Prima's fair value given the weak sentiment.
Media Prima's fair value was cut to RM2.98 from RM3.01 as OSK Research pegged it at a lower financial year 2012 (FY12) price earnings ratio of 14.5x versus 16x previously.
"With our conservative stance, we are lowering our adex growth for free-to-air (FTA) television segment by one per cent for FY12 and FY13, respectively.
"Nonetheless, there may be a possible upward re-rating for this segment should the outcome of negotiations on content sharing for sports events between pay- and FTA-television operators be positive," OSK Research said.
Meanwhile, Hong Leong Investment Bank has upgraded Media Prima to "hold", in view of the recent correction in its share price.
"We maintain the target price of RM2.34 based on 12.9x FY12 earnings," it said.
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