DnB Markets - Modern Times Group MTG AB Class B (MTG B) MTG (Buy, TP: SEK85.00) - Upside potential revisited

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DnB Markets

Martin Arnell

EUR 95.03 For Business Accounts Only

MTG (Buy, TP: SEK85.00) - Upside potential revisited

We have upgraded MTG to BUY (HOLD), with an unchanged SEK85 target price following the weak share-price performance and ahead of a potential market recovery in H2. Some challenges remain, but we believe risk/reward has improved. We have raised our 2023e EBITDA by 6%, mainly to reflect positive FX trends. Also, signs that MTG is on track to meet its 2023 organic revenue growth target of -3% to +2% YOY could be a positive catalyst, while we believe the strong balance sheet remains a key positive.

07/07/2023 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: SEK85.00) - Upside potential revisited

MTG Minor model adjustments

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Edda Wind (Buy, TP: NOK30.00) - Well positioned

Valuation and market update

Petrobras FPSO delays may hit service volumes but lengthen cycle

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