DBS (DP) - MNCN UPGRADE TO BUY TP 1150 (FR HOLD)
Time to revisit the counter
Upgrade our call from HOLD to BUY on Media Nusantara Citra (MNCN) with a new target price (TP) of Rp1,150 (+27% upside). With the stock currently trading at 6.7x FY19F PE or -2 SD from its historical mean and 4.6x FY19F EV/EBITDA (on par with Visi Media Asia (VIVA)), we see value in this counter. We believe that; 1) the company’s strong audience share numbers and, 2) French media conglomerate Vivendi’s strategic investment in MNCN that was announced on Feb19, should provide some catalysts for the re-rating of MNCN’s stock.
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