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NENT rated ‘Buy’ by bank

March 1, 2022

Equity analysts at Berenberg Bank have updated their advice to clients on Nordic Entertainment Group (NENT). They first looked at the company in November 2020 when its shares were at SEK 375.6 (€35.12). They rose to SEK 530 in August last year. They are now at just SEK 316.5, and the bank is rating the company a ‘Buy’ with a target share price of SEK 520.

The bank’s report says: “We believe that NENT’s performance over the past year warrants a continued appreciation of the share price and thus remain of the opinion that, at current levels, shares are fundamentally undervalued. That said, we are rebasing our estimates – particularly in the near term – and updating our valuation, which leads us to a price target of SEK525 (from SEK625); this represents 65 per cent upside to current levels.”

The Berenberg report on the launch of Viaplay in the Dutch market, saying: “We find that the two key factors in the subscription decision for Viaplay Netherlands are price and sports content, and the data we have gathered suggest that NENT has assembled a compelling offering on both fronts.”

“While consensus estimates for short-term operating profits have come down recently, the long-term forecasts are higher than they were at the time of our initiation. We believe it is important to focus on the long-term potential of NENT once the International segment is profitable and therefore remain bullish despite lower near-term estimates,” adds the bank.

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