This Article is From Mar 19, 2013

Sun TV downgraded to 'neutral'; shares fall

Sun TV downgraded to 'neutral'; shares fall

Shares in Sun TV Network Ltd fell 1.1 per cent after Citigroup downgraded the stock to 'neutral' from 'buy', citing its stronger performance compared with peers recently.

The gain over the past six months "largely prices in the bottoming-out of Sun's ad revenues and potential benefits from digitalization," Citigroup said in its report.

Sun TV shares have risen 25.34 per cent since October 1 as of Monday's close, while rival Zee Entertainment Enterprises Ltd has gained 10.6 per cent in the same period.

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However, Citigroup continues to prefer Sun TV to Zee, which it recently downgraded to 'sell', saying Sun has stronger presence in key markets, an expected earnings recovery from trough levels and better relative valuations.

Copyright @ Thomson Reuters 2013