NEWS INDONESIA-CIMB upgrades Media Nusantara to ‘outperform’ CIMB Equity Research upgraded its rating on Indonesian television channel operator PT Media Nusantara Citra Tbk to ‘outperform’ from ‘neutral’, citing a substantial increase in dividend payout, better-than-expected margins and the buyout of the remaining 25 percent stake in MNC TV. “Our optimistic view is based on three factors: higher competition in consumer products is likely to fuel growth in ad spend, additional revenue from political campaigns which may start as early as June 2013, and low ad spend in the region,” CIMB analyst Irenne Achmad said in a note on Friday. The research house also raised Media Nusantara’s target price to 3,350 rupiah from 3,300 rupiah, saying the company will continue to ride on the media sector’s strong earnings growth momentum which will limits near-term downside risks for its earnings. “Sector tailwinds aside, MNCN is forecasting an earnings growth of 20 percent on the back of 18 percent growth in advertising revenue and slight margin expansion,” the note said. The media firm’s shares were down 1.05 percent at 2,350 rupiah, while the broader index was up 1.21 percent. 1056 (0356 GMT) ($1 = 9,740 rupiah)
