BEC World
Play
Good, but unexciting Neutral, maintained Share price Bt 38.50, target price: Bt 43.00
BEC World Plc
We like BEC for its ad rate pricing power and asset efficiency, which make it less vulnerable to an economic downturn than other media operators. However, we see near-term earnings hiccups and some headwinds from the newly-established regulator. We cut our 2012 core EPS forecast to reflect the macroeconomic gloom. Nevertheless, the impact should be mitigated by corporate tax cuts. We maintain our NEUTRAL call and our target price (a DCF/PEG combination) is raised due to a valuation rollover.
