LONDON (ShareCast) - TV and film studios owner Pinewood Shepperton (LSE: PWS.L - news) represents a unique asset-backed media play in
the view of broker Charles Stanley, which has reiterated its 'buy' recommendation for the stock.
Charles Stanley has a target price of 180p for the stock and says: 'Our sum-of-the-parts calculation combines a price for the value of the group's property, the value of the operating company and the value of future development potential. Occupancy and yields within the property proportion, considerably the largest part of this, have remained strong through the downturn.'
The broker believes sentiment towards the stock could improve once the US Screen Actors Guild resolves its contract dispute with the Hollywood studios. Charles Stanley is also encouraged by industry gossip concerning a move into the Canadian market, through a five-year management contract at Toronto's new Filmport studio complex.
'We expect the recovery in sentiment towards property and media to continue to buoy the shares, especially should any development news return ... Any further stake-building by Peel Holdings (now 26.8%) would act as a further spur,' the broker concludes.
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