May 17 (Bloomberg) -- Modern Times Group AB, the Swedish broadcaster with operations in 36 countries, advanced the most in 10 days in Stockholm trading after Svenska Handelsbanken AB recommended clients to buy the shares.
MTG’s stock rose as much as 1.6 percent, the steepest gain since May 7, and was 1 percent higher at 271.7 kronor at 12:34 p.m. local time. The stock has gained 20 percent this year, valuing the company at 18.4 billion kronor ($2.8 billion). The shares fell 31 percent last year.
“We estimate MTG’s revenue potential in Russia, where Viaplay launched in the second quarter of 2012, to be $600 million to $900 million, but are convinced that further markets will be targeted ahead,” Rasmus Engberg, an analyst at Handelsbanken in Stockholm, said in note to clients today. He raised his rating on the share from reduce.
MTG tumbled last year as the broadcaster’s third-quarter profit missed estimates and it said it was increasing investment in Nordic pay-TV content, premium channels and its online pay-TV service. Handelsbanken said MTG is now back on its historical path of “delivering growth and solid cash flow to reinvest in long-term growth drivers elsewhere.”
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