Shares of Grupo Televisa SA (TV:US), the world's largest Spanish-language media company, rose after analysts at Merrill Lynch forecast the U.S. traded stock will climb to $34 by yearend, boosted by the addition of gambling revenue.
U.S. American depositary receipts of Televisa rose $1.04, or 3.9 percent, to $28.04 after the report. Mexican shares rose 2.23 pesos, or 3.8 percent to 61.37 pesos, the highest since at least 1993. Analysts led by Michael Kopelman raised their estimate for price of U.S. shares of Televisa at the end of 2007 from $29.
Televisa has opened five bingo-style game parlors in Mexico and is expected to launch a nationwide lottery shortly, the analysts said. The company's gaming business could make up as much as 10 percent of earnings before interest, taxes, depreciation and amortization by 2010, Merrill said.
Also, Televisa is ``highly likely'' to reach an agreement to continue as a minority shareholder in Univision Communications Inc., the Spanish-language U.S. network Televisa sought unsuccessfully to buy last year, the report said.
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