Buy Zee Entertainment Enterprises: target of Rs 400: Sharekhan
Sharekhan is bullish on Zee Entertainment Enterprises has recommended buy rating on the stock with a target price of Rs 400 in its research report dated September 22, 2021.
September 23, 2021 / 10:47 AM IST
Sharekhan's research report on Zee Entertainment Enterprises
ZEEL & Sony Pictures Networks India (SPNI) have entered into a non-binding term sheet to merge themselves. This will create the largest media company with a market share of ~25% in India. Merged entity will be well-placed to maximize revenue given its strong potential to reach a larger number of advertisers. Synergies would have an impact of 6-10% on revenue. As Sony will be the promoter of the combined entity, we believe the corporate governance overhang on ZEEL would fade away and boost investors’ confidence.
We maintain a Buy on the stock with a revised PT of Rs. 400. Growth capital would be used to accelerate its digital platform growth and invest in premier content including sports.
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