EXPM:KWWMF - Post by User
Post by
retiredcfon Apr 30, 2019 8:41am
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Post# 29687546
TD
TDNot sure about manipulation but like the rest of us, they must be wondering why the SP has declined 13% since they produced this note. GLTA
Kew Media Group Inc.
KEW-T: C$7.10; ACTION LIST BUY 12-Month Target: C$13.00
Most of the video content companies that we track have seen good share price and multiple expansion in recent months trading at ~10x-12x 2019E EBITDA, while KEW continues to trade at a meaningful discount at 6.5x 2019E EBITDA. In fact, KEW trades more in-line with legacy media stocks even though it has no exposure to advertising revenue and it is a pure-play video content company. We believe that material upward re-rating is likely in the coming months as investors see positive developments for both the industry and KEW specifically, as well as evidence that 2019 guidance is on track in the upcoming quarters. We look forward to announcement of strategic and accretive acquisitions and meaningful improvements in FCF in 2019. We reiterate our ACTION LIST BUY rating.
