Morgan Stanley (NYSE:MS) Accentuated Grupo Televisa (NYSE:TV) SAB’s Rating

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By Hanson So on October 28, 2014 Company

Grupo Televisa SAB (NYSE:TV) is a Mexican based television Broadcasting company which is Mexican based. It provides services to Spanish-speaking Latin American countries as well as the international entertainment business market. It is the largest media company in Spanish speaking market. The company runs 4 television networks in Mexico and has around 260 associated stations. Televisa (NYSE:TV) has grown over the years, and has expanded its services by moving into new markets with latest technology and equipment.

According to a research note released on Monday, Morgan Stanley (NYSE:MS) accentuated the “overweight” rating of Grupo Televisa SAB (NYSE:TV). Grupo Televisa SAB’s (NYSE:TV) price aspiration on the stock was $42.00 earlier, but has been reduced to $38.00 now. The price target by Morgan Stanley (NYSE:MS) shows a 15.71% increase from the company’s latest price.

The advertising revenue growth revealed by Grupo Televisa SAB (NYSE:TV) was much lower than expected by the analysts. Analysts had predicted a 7% year on year growth as opposed to the -6% that was revealed by the company. Based on the results, analysts lowered their expectations from 5% to -3% for the fourth quarter in 2014. The 2015 advertising revenue growth was also reduced to 4%. However, the lower expectations were balanced out by two things:

Higher aspirations in other sectors.
Incorporation of Cablecom in the company’s lot.

The analysts revealed their expectations for EBITDA in 2015e to rise by 3%, and in 2016; by 1%. They also said that below the EBITDA line, they have withdrawn any involvement of lusacell on the Affiliate net income, so much so that they have increased the EPADR by 1% in 2015e and reduced it by 7% in 2016. The reduction on PT, which is 9.5% shows their transition from content to cable.

On Monday, the trades of Grupo Televisa SAB (NYSE:TV) went up to 0.40% and touched $32.97. About 466,457 shares of the company’s stock were traded. The company has shown $27.42 low per year, and per year high of $37.83. The company’s stock’s moving average is as follows:

Moving average for 50 days – $34.52
Moving average for 200 days -$34.49

Grupo’s Televisa SAB (NYSE:TV) has a market capitalization of $19.070 billion.

On Monday, October 27^th; the latest quarterly earnings of Grupo Telvisa’s SAB (NYSE:TV) were posted, which showed $0.02 EPS or Earnings per Share. The predicted EPS was either $0.17 or $0.19. According to the expectations of the analysts, Grupo Televisa SAB (NYSE:TV) should post $1.15 earnings per share this year.

On Tuesday, August 19^th, Maxim Group (NASDAQ:MMS) increased their predicted price on shares of Grupo Televisa SAB (NYSE:TV) to $45.00 from $40.00. The company currently has a “buy” rating on the stock. Four other companies have also rated Grupo Televisa SAB (NYSE:TV) as “buy”, while a couple of investment analysts gave the stock a “hold” rating. On the whole, the company’s average rating is “buy” and an average predicted price of $40.00. This rating has been accentuated by Morgan Stanley (NYSE:MS) which is an American multinational financial service corporation.