Zee Entertainment Enterprises shares extended their rally for the second straight day even after reporting 94% decline in net profit for the quarter ended June 2020 that the company revealed on Tuesday (August 18, 2020)
Today's surge in the stock price of the counter by as much as 4.9% to day's high price of Rs. 206.90 is attributed to another upgrade for the stock by Citi to 'buy'.
The global research company has upgraded the stock from 'neutral' to 'buy' while also raising its target price to Rs. 240 per share. As per a CNBC TV 18 report, the firm sees stock of Zee Entertainment to remain volatile with execution remaining the key. Also the new target is primarily influenced by an increase in multiple to 14x FY22E earnings with risk-reward also turning more positive.
Another global firm Macquarie also maintains an outperform call on the counter with a target price set at Rs. 250 per share. . FY21-23E earnings per share (EPS) was up 3-5%, while it raised FY22E price-earnings ratio (PER) target multiple to 14x from 12x, it added.