Euroxx Securities: Initiation of Coverage of Alter Ego Media with Target Price of €6.50 per Share

Euroxx Securities initiated coverage of Alter Ego Media with a target price of €6.5 per share, reflecting an approximate 53% upside potential. Alter Ego Media is a leading media group in Greece, operating in content creation and TV broadcasting through the MEGA brand, as well as publishing.

In analysts view, Alter Ego’s portfolio, with strong brand recognition, well-positions the company in a highly competitive market, ranking first in the Greek TV market in terms of viewership. They expect Alter Ego’s targeted investment plan to further strengthen its dominant market share and profitability going forward. On Euroxx Securities’ 2025E numbers the company trades on a 6.5x EV/EBIT, indicating a 46% discount to peers, while offering superior dividend yields.

Euroxx Securities expects the group’s strategy, which focuses on digital transformation and expansion towards streaming services, to improve revenue diversification and operational efficiency, with targeted acquisitions to further boost profitability. For 2025-2027E, analysts forecast a three-year organic revenue CAGR of 5.1%, translated into a 28% EBIT CAGR and 34% net profit CAGR respectively, driven by the successful production of original content, as well as rising advertising activity on the back of strong macro fundamentals.

In 2025-2027E, Euroxx Securities forecasts a payout ratio of 57%-58%, on strong net profit growth, indicating a dividend yield of 4.6%-5.6%, well above peers. Alter Ego’s Annual General Meeting, to be held on June 17th, is expected to approve a 3-year scrip dividend, which should further strengthen the company’s cash position, on analysts’ assumptions.

Source: tovima.com