Unlocking Potential: Kino Polska TV (KPL) Initiates Analyst Coverage with a Buy Recommendation and PLN 18.4 Target
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VALUATION AND SUMMARY
We are initiating analyst coverage for Kino Polska TV (KPL). On the basis of our assumptions, we recommend to buy the shares of Kino Polska TV (KPL) with a target price of PLN 18.4 per share, which is about 33% higher than the current market price.
Our valuation is based on the DCF model and multiplier analysis. The DCF methodology yields a PLN 18.4/share value. The EV/EBITDA multiple analysis for 2023-2024 results in a share price of PLN 18.3. The final valuation is determined by taking the average of the two methods used.
Kino Polska TV is currently at a pivotal moment because of its acquisition by the Vivendi conglomerate, specifically the Canal+ Group. We expect to see stabilization of results in the crucial FilmBox segment in the upcoming quarters, which has been responsible for the growth momentum in recent years. Additionally, we anticipate a significant improvement in results at Stopklatka and Zoom TV. Thus, we anticipate that KPL will exhibit an uptick in EBITDA adj. by 7.8% and 6.7% year-over-year in 2024 and 2025, respectively, at a consolidated level.
We expect that in 2024, the management of the company will provide a more detailed focus on future initiatives aimed at improving its market position as part of the Canal+ Group. One expected change is increased sharing of program libraries. Equally important to us would be forthcoming decisions related to the development of the streaming service, FilmBo
