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Citigroup downgrades Sun TV; shares fall

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Reuters
Last Updated : Mar 19 2013 | 12:50 PM IST

Reuters Market Eye - Shares in Sun TV Network Ltd fall 1.1 percent after Citigroup downgraded the stock to "neutral" from "buy", citing its stronger performance compared with peers recently.

The gain over the past six months "largely prices in the bottoming-out of Sun's ad revenues and potential benefits from digitalization," Citigroup says in its report.

Sun TV shares have risen 25.34 percent since October 1 as of Monday's close, while rival Zee Entertainment Enterprises Ltd gained 10.6 percent in the same period.

However, Citigroup continues to prefer Sun TV to Zee, which it recently downgraded to "sell", saying Sun has stronger presence in key markets, an expected earnings recovery from trough levels and better relative valuations.

(Reporting by Abhishek Vvishnoi)

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First Published: Mar 19 2013 | 12:31 PM IST

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