Stock Name: MEDIA
Company Name: MEDIA PRIMA BHD
Research House: MAYBANK



Maybank recommended a "buy" call on Media Prima with a target price of RM2.85, saying the stock offered earnings growth and dividend yield.

"We expect Media Prima's market-leading TV and radio stations and 'Harian Metro' daily; nationwide outdoor reach from airports to highways, trains and malls; and innovative on-line presence to attract a growing share of the advertising pie," said Maybank.

Maybank expected 15 per cent per annum EPS growth and a 4 per cent net dividend yield that was expected to rise.

"We think the 20-50 per cent dividend policy is ripe for review.

"The RM595m net debt as at 30 June will soon be easily covered if EBITDA continues to accumulate at the expected pace exceeding RM300m per annum.