Business

     




Published: Thursday April 18, 2013 MYT 9:59:00 AM

RHB Research upgrades Catcha Media to Buy, FV 65 sen


KUALA LUMPUR: RHB Research expects Catcha Media's performance to improve, underpinned by a recovery in advertising expenditure and continuous enhancements in the Internet service infrastructure.

“As its earnings are not meaningful yet - which is normal for a young dot-com - we are changing our valuation methodology to one based on sum-of-the-parts, to arrive at a new fair value of 65 sen. Upgrade to Buy,” it said on Thursday.

RHB Research said the media sector is poised for a recovery in the second half of 2013 once the uncertainties and risks associated with the country's general election are lifted, compelling advertisers to spend again.

“The 2H is typically a stronger period for advertising expenditure (adex) due to the many festivities such as the Hari Raya, Deepavali and Christmas, and not forgetting the mega sales carnivals,” said the research house.

RHB Research said Catcha Media is well-positioned in online space. Internet advertising could catalyse the media sector's next wave of growth as the region is seeing a stream of upgrades on broadband infrastructure.

“Catcha Media is well positioned to tap the vast potential for online advertising in the region, especially in Malaysia where Internet adoption is accelerating on the back of higher data adoption and the proliferation of smartphones and tablets,” said the research house.

  • E-mail this story
  • Print this story
  • Bookmark and Share
 

advertisement