Edelweiss is bullish on Sun TV Network has recommended buy rating on the stock with a target price of Rs 955 in its research report dated April 18, 2017.
Edelweiss' report on Sun TV Network
The Tamil Nadu government‐owned Arasu Cable TV Corporation (Arasu) has received a provisional digital licence from MIB after a wait of 5 years. We perceive this as a positive trigger for Sun TV Network (Sun TV) and other broadcasters as it will speed up digitisation in the state.
Sun TV is expected to be beneficiary of digitisation in Phase III & IV markets. Digitisation in Tamil Nadu will give further impetus. The regulatory concern on the company has waned as the special court has acquitted promoters. We maintain ’BUY/SP’ with target price of INR 955. At CMP, the stock trades at 26.6x and 22.6x FY18E and FY19E EPS, respectively.
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