Nine Entertainment Co. Holdings Ltd
NEC: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$6.20 | Lhmps | Fzsfjvkr |
Digital and Cost Cuts Drive the Front Nine, Cyclical Tailwinds to Come on the Back Nine
We lift our fair value estimate on Nine by 13%, or AUD 0.25 per share, to AUD 2.25. AUD 0.06 of the increase is due to Morningstar's recent fair value estimate upgrade on Domain to AUD 3.50 per share (from AUD 3.20) which we incorporate in our Nine intrinsic assessment for its 59.2% shareholding. The balance of the Nine fair value estimate lift reflects an average 12% step up in our underlying EBITDA forecasts.