Bank of America Reiterates Neutral Rating, $27 PT on Grupo Televisa SAB Following Adjusted Forecasts

In a report published Friday, Bank of America analyst Mauricio Fernandes reiterated a Neutral rating and $27.00 price target on Grupo Televisa SAB TV. In the report, Bank of America noted, “A softer than expected domestic demand in Mexico and the downward revision to our 2013E GDP forecasts (to 2.5% from 2.8%) led us to cut our 2013-15E revenue estimates by an avg. of 1.3%. However, we raise our EBITDA forecasts by 1.1%, on avg., as now we estimate that TV's pay-TV subsidiaries will benefit from savings related to the new ‘must carry and must offer' regulation expected to be implemented by the new telco regulator, IFETEL, from 4Q13. Our EPS forecasts are 8% lower, on avg., to reflect higher losses from Iusacell (mainly related to FX), and a higher contribution to minorities (Table 2). Maintain Neutral.” Grupo Televisa SAB closed on Wednesday at $24.06.