The notable downward revision in Nine Entertainment Holdings’ consensus price target primarily reflects a significant drop in its future P/E ratio despite a modest improvement in net profit margin, resulting in a new fair value estimate of A$1.65.
What's in the News
- Nine announced an annual dividend of AUD 0.0400 per share, and a fully franked special dividend of 49.0 cents per share, both payable to shareholders in late September.
- Martyn Roberts, with extensive experience at Ramsay Health Care and Coca-Cola Amatil, has been appointed Chief Financial Officer effective early September, with Graeme Cassells retiring at year-end.
- Nine is considering a potential acquisition of Southern Cross Austereo after its $3 billion sale of Domain, funded partly by a $1.4 billion windfall, with parallel plans to divest its existing talkback radio stations.
- Multiple bids have emerged for Nine’s radio network assets, with sale prioritised following the Domain deal and company seeking between $50–60 million for the division.
- Major shareholder Bruce Gordon is contemplating increasing his stake or a possible takeover of Nine, with his holding just under the 20% threshold that would mandate a formal bid, as the completion of the Domain sale is anticipated to boost the company’s cash position and lower its share price.
Valuation Changes
Summary of Valuation Changes for Nine Entertainment Holdings
- The Consensus Analyst Price Target has fallen from A$1.80 to A$1.65.
- The Future P/E for Nine Entertainment Holdings has significantly fallen from 20.03x to 17.56x.
- The Net Profit Margin for Nine Entertainment Holdings has risen slightly from 7.27% to 7.63%.
Disclaimer
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