DnB Markets - Modern Times Group MTG AB Class B (MTG B) MTG (Buy, TP: SEK105.00) - Play it simple, return to growth

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DnB Markets

Martin Arnell

EUR 90.87 For Business Accounts Only

MTG (Buy, TP: SEK105.00) - Play it simple, return to growth

We reiterate our BUY and have raised our target price to SEK105 (90) after the strong Q3 results (EBITDA c30% above consensus) and rejuvenated conviction in the profitable growth outlook. In total, we have raised our 2023–2025e adj. EPS by c10% on average. We estimate an acceleration of organic revenue growth (7% YOY for Q4e) and the case also benefits from the healthy SEK4bn net cash, enabling further buybacks.

25/10/2023 1 EN

Underlying

Modern Times Group MTG AB Class B

Modern Times Group MTG AB is an entertainment group with operations that include free-television (TV), pay-TV, digital entertainment, radio and content production businesses. Co. has six business segments. Five of these segments, Free-TV Scandinavia, Pay-TV Nordic, Free-TV Emerging Markets, Pay-TV Emerging Markets and CTC Media, comprise Viasat Broadcasting. Co.'s Viasat Broadcasting is a free-TV and pay-TV operator, and also an operator and distributor of live and on-demand streamed free and paid video content over the internet, providing movies, live sports events, TV series, and catch-up services. The sixth business segment mainly comprises Co.'s MTG Studios, MTGx and Radio businesses.

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SE0000412371 Nasdaq Nordic Stockholm Sweden

Provider

DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

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Analysts

Martin Arnell

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MTG (Buy, TP: SEK105.00) - Play it simple, return to growth

Modern Times Group AB: 3 directors

MTG (Buy, TP: SEK120.00) - Profitable growth and buybacks

MTG (Buy, TP: SEK110.00) - Positive trend continuing

Metsa Board (Buy, TP: EUR11.00) - Scope for a revaluation

BioArctic (Buy, TP: SEK350.00) - Limited news on EU approval

Surgical Science (Buy, TP: SEK230.00) - Weaker than expected start to 2024

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