Zee Entertainment Enterprises share price: Zee shares were in focus on Thursday after the company signed a binding agreement with Sony. What should investors do with Zee Entertainment shares post the merger? Here's what brokerages say:
Zee Entertainment Enterprises Limited (ZEEL) shares rose on Thursday, a day after the media conglomerate finalised a deal with Sony's India unit, Sony Pictures Networks India, to merge their television channels, film assets and streaming platforms. The two groups are joining forces to take on the likes of Netflix and Disney in the country.
ZEEL shares rose more than two percent on Thursday before trimming most of those gains. The stock was last seen up 0.7 percent at Rs 351 on BSE, having risen as much as 2.4 percent to Rs 357 earlier in the day.
On Wednesday, Zee shares ended with a gain of half a percent, recovering initial losses after the news.
Brokerages have a positive view on Zee Entertainment Enterprises, with target prices as high as Rs 450 - an upside of around 29 percent from Wednesday's closing price.
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What should investors do with Zee Entertainment shares now? Here's what brokerages say:
The brokerage said it needs to be monitored how Invesco and other key institutions vote.
Valuations could return to historical highs when the deal is sealed, according to the brokerage.
A strategic partner like Sony will have the ability to leverage large scale opportunities in the Indian media space, according to the brokerage.
The brokerage said digital initiatives are a key monitorable. The Zee-Sony combine still lags behind Disney Hotstar, it added.
(Edited by : Ajay Vaishnav)
First Published: IST