Update shared on 08 Nov 2025
Fair value Decreased 5.64%Analysts have reduced their price target for Nine Entertainment Holdings from A$1.65 to A$1.56. They cite a cautious outlook on television segment exposure and the recent share rally as key factors behind the updated valuation.
Analyst Commentary
Analyst perspectives on Nine Entertainment Holdings offer a mix of optimism and caution, largely shaped by recent market movements and sector dynamics.
Bullish Takeaways
- Bullish analysts view the current price as reflecting strong prior performance and positive momentum from the recent share rally.
- Expectations remain for continued operational stability in core segments outside of television. This supports the overall valuation.
- Some optimism exists about Nine Entertainment's ability to adapt its business model in response to evolving market conditions.
Bearish Takeaways
- Bearish analysts express concern about heightened exposure to the television segment, which faces ongoing industry headwinds.
- There is growing caution around future growth rates. Recent outperformance is now seen as potentially limiting further upside.
- Valuation is considered stretched by some, particularly after the recent rally. This has prompted a more neutral stance from selective analysts.
What's in the News
- CEO Matt Stanton indicated Nine will pursue targeted, complementary acquisitions with the proceeds from its Domain windfall rather than a major transformational deal. (Key Developments)
- Nine is exploring the possible sale of its talkback radio network, with multiple unsolicited offers received and negotiations ongoing as the company considers investments in other audio assets. (Key Developments)
- There is speculation that Nine could make a bid for Southern Cross Austereo, Australia's largest radio broadcaster, following the $3 billion Domain sale and potential talkback radio divestment. (Key Developments)
- Nine will pay a special fully franked dividend of 49.0 cents per share and an annual dividend of 4.0 cents per share to shareholders in September 2025. (Key Developments)
- Martyn Roberts has been appointed as the new Chief Financial Officer, succeeding Graeme Cassells to manage Nine's financial strategy. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has decreased from A$1.65 to A$1.56, indicating a modest reduction in expected valuation.
- Discount Rate has fallen slightly from 7.17% to 7.05%, reflecting a marginal decrease in perceived risk.
- Revenue Growth projection has declined further from -3.75% to -3.90%, signaling increased expectations of revenue contraction.
- Net Profit Margin estimate has dropped from 7.63% to 7.41%, suggesting a modest anticipated reduction in profitability.
- Future P/E Ratio has lowered from 17.56x to 17.08x, implying a slight decrease in valuation multiples.
Disclaimer
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