The Nine Entertainment Co Holdings Ltd (ASX NEC) share price has been surging higher in 2021 and is a top performer amongst ASX 200 shares.
The post Why the Nine (ASX:NEC) share price is up 26% in 2021 appeared first on The Motley Fool Australia. –
The Nine Entertainment Co Holdings Ltd (ASX: NEC) share price has been surging in 2021. Shares in the Aussie entertainment group have climbed higher amid surging profits and a change in leadership.
Why is the Nine share price climbing?
Nine has continued its strong gains from 2020 into the new year. That comes on the back of a number of factors including a price target upgrade to $3.80 per share from Macquarie Group Ltd (ASX: MQG) analysts.
Another big factor was Nine’s half-year financial results on February 24. Nine more than doubled the prior corresponding period’s (pcp’s) net profit after tax, climbing from $87.3 million to $181.9 million.
That came despite a 3% drop in revenue from continuing operations, while earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations jumped 42%.
More certainty around the company’s leadership team has also helped push the Nine share price higher. Nine shares jumped higher as Stan CEO Mike Sneesby was unveiled as the next Nine CEO.
The latest update follows the well-publicised resignation of current CEO Hugh Marks who is due to be replaced by Mr Sneesby on 1 April 2021.
The Nine share price has now climbed 25.9% higher to $2.92 per share in 2021. That means the company’s shares have now jumped 124.6% in the last 12 months.
That includes a $30 million deal with Google-parent Alphabet, which has alleviated concerns around lost revenue from changing media laws.
The Nine share price has been soaring higher in 2021 and is a top performer amongst the S&P/ASX 200 Index (ASX: XJO). Shares in the Aussie media group have been boosted by new media deals, strong earnings and leadership changes.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- 5 ASX shares to buy in a market crash
- Why the Omni Bridgeway (ASX:OBL) share price is one to watch
- ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
- 5 things to watch on the ASX 200 on Monday
- These were the best performing ASX 200 shares last week
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.