In a report released yesterday, Kane Hannan from Goldman Sachs downgraded Nine Entertainment Co. Holdings Limited to a Hold, with a price target of A$1.75.
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Kane Hannan has given his Hold rating due to a combination of factors impacting Nine Entertainment Co. Holdings Limited. The company’s fiscal year 2025 results showed a mixed performance, with earnings before interest, taxes, depreciation, and amortization (EBITDA) and net profit after tax (NPAT) presenting varied outcomes compared to Goldman Sachs estimates. While the Stan segment performed well, surpassing expectations in both earnings and subscriber numbers, the television segment faced challenges with a softer outlook and increased costs expected in fiscal year 2026.
Despite the company’s strong year-to-date trading performance, the target price remains unchanged and is below the last closing price, indicating potential downside. Additionally, the divestment of Domain has increased the company’s reliance on the television segment, which now constitutes a larger portion of its earnings. This shift raises concerns due to the cautious outlook on the television market. These elements collectively contribute to the decision to maintain a Hold rating for NEC’s stock.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NEC in relation to earlier this year.