Morgan Stanley lifts PT for NZ's Sky Network Television on Discovery NZ acquisition

Sky Network Television

05/09/2025 04:39

** Analysts at Morgan Stanley raise price target of New Zealand's Sky Network Television SKT.NZ to NZ$2.29 from NZ$2.00; reiterate "underweight" rating

** Brokerage says SKT, like global peers, faces structural challenges such as cord-cutting and rising sports rights costs

** However, Morgan Stanley believes recent acquisition of Discovery NZ by SKT is strategically smart and value-accretive

** Due to New Zealand's small market size, scale economics make direct-to-consumer infeasible for most studios, leading more content suppliers to partner with SKT rather than operate independently - Morgan Stanley

** SKT currently 0.3% down at NZ$3.12, paring YTD gains to 20%

 (Reporting by Keshav Singh Chundawat in Bengaluru)

 ((Keshav.SinghChundawat@thomsonreuters.com;))