Modern Times Group AB (MTGB), the Swedish broadcaster with operations in 36 countries, rose to the highest level in almost three months after UBS AG recommended investors buy the stock.
MTG’s shares jumped as much as 2.9 percent to 245.7 kronor, the highest price since Oct. 18. The stock traded 2 percent higher at 243.5 kronor at 10:36 a.m. in Stockholm trading today, representing 60 percent of the daily three-month average volume. The shares fell 31 percent last year.
“We see the recent share price decline reversing as new management reassures that further investment is not required, the Free TV business gains share and advertising improves, and the Pay TV business shows momentum,” London-based analysts Tamsin Garrity and Jerome Sterckx said in an emailed note today. The stock was raised from a neutral recommendation.
MTG’s shares tumbled last year after the broadcaster’s third-quarter profit missed estimates and it said it was increasing investment in Nordic pay-TV content, premium channels and its online pay-TV service. Bank of America Merrill Lynch said the increased investment would reduce profitability.
Full-year results are scheduled to be published Feb. 13.
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