Media company Viaplay Group is trimming its costs to boost profits, and if the company meets its targets, the stock is considered cheap. This is the assessment made by Affärsvärlden in an analysis published on Friday, though the magazine ultimately settles on a neutral recommendation.
“After significant missteps, Viaplay is now a more focused group. Prioritizing profitability over growth is a necessity, but it also lays the groundwork for better long-term prospects. The acquisition of Allente provides full control over a business with stronger margins and cash flows. However, debt levels are on the high side, which once again increases financial risk. This also means the downside in a pessimistic scenario could be quite severe,” writes Affärsvärlden.
A central issue, according to the analysis, is how Viaplay's main owners, Canal+ and PPF, view the company.
“Potential buyouts are not something we base a buy recommendation on. The upside in the main scenario is fairly good, but given the risks, it is not sufficient for us to issue a buy recommendation,” the magazine concludes.
