Various channels run by Zee Entertainment Ltd. (Source: zeeentertainment.com)

Zee Shares Lag Estimates By Most In Eight Years

The mismatch between Zee Entertainment Enterprises Ltd.’s performance and analyst expectations is at its widest in eight years.

Shares of the media company are trading 24 percent lower than the 12-month consensus target price of analysts surveyed by Bloomberg. That’s the maximum gap since January 2011. The stock has declined 20 percent this year compared with a 9 percent rise in the benchmark Nifty 50.

The consumption of content which has been moving online will pose new challenges for traditional broadcasters like Zee, according to Morgan Stanley, which downgraded the company to ‘underweight’. This, the brokerage said, is likely to bear down on operational profitability in the near term as it makes more investments in its online platform Zee5.

Also read: Zee Entertainment Falls To 20-Month Low After Morgan Stanley Downgrade