[ET Net News Agency, 16 October 2017] UBS Global Research lowered its target price for
TVB (00511) to HK$23 from HK$25.5, and maintained its "sell" rating.
The research house said TVB's 1H sales growth has returned to positive territory (3%
YoY), after declining 9% and 5% YoY in 2015 and 2016, respectively. As Hong Kong inbound
tourism and retailer sales stabilize, UBS anticipated the advertising industry will
follow.
It estimated sales growth of 2% and 2% in 2018 and 2019, respectively, reflecting a
stabilizing ad spending trend without a strong recovery. But UBS lowered its 2017-19 EPS
7-8%. (KL)