To all those trying to work out PE ratios - 13.5x FY17 and 11.5x FY18
Media monitoring group iSentia (ISD.AU) says it has addressed issues at its
King Content business that led to Thursday's profit warning, but UBS isn't
ready to give it the benefit of the doubt. ISentia said it expects King Content to make a
A$2 million Ebitda loss in 1H, but this wouldn't be repeated in the second half of
the financial year. UBS lowers its price target by 35% to A$2.50/share, but highlights
iSentia's price-to-earnings multiple of 13.5 times in FY17 and 11.5 times in FY18.
"Whilst we recognize valuation looks appealing, we want to see tangible signs of the
King Content turnaround," the broker says. As a result, UBS' neutral call is
unchanged. ISD last traded at A$2.38.
DYOR
ISD Price at posting:
$2.38 Sentiment: Hold Disclosure: Held
