Nomura maintains buy on Zee Entertainment, but cuts price target by 17%

Zee Entertainment Enterprisesshares declined marginally in morning on Monday after Japanese brokerage firm Nomura slashed price target on the stock by 17.5 percent, though it maintained buy rating.

The stock was quoting at Rs 447.00, down Rs 1.60, or 0.36 percent on the BSE, at 09:30 hours IST.

Nomura cut its price target to Rs 553 from Rs 671 apiece earlier as it lowered its revenue estimates by 1 percent over FY19/20 and EPS estimates by 2-4 percent over FY19-21.

For the reason to have a buy on Zee, the research house believes company could be a strategic fit for Sony & Comcast.

“For Sony, it would help company leapfrog in terms of profitable growth in India and for Comcast, it opens up a long-term growth opportunity,” it explained.

Chances of company’s stake getting sold are high, it feels.

Last year, promoter Subhash Chandra expressed his intention to sell up to 50 percent of the stake held in the company.

Promoter group companies held 41.62 percent stake in Zee Entertainment, as of December 2018.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.