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GTN [OUTPERFORM +19.8%] - Valuable assets but execution remains sluggish - Update

We update GTN with an OUTPERFORM rating. GTN looks cheap on a sum-of-part basis after a 22% correction since our last report although its execution progress trails our expectations. We cut our target price by 18% mainly because we lower our five-year dairy revenue CAGR forecast from 10% to 6% as early impressions from GTN’s brand refresh campaign are muted. GTN’s NPAT-MI plunged 45% YoY in Q1 2018 on weak dairy sales due to a long winter, smaller non-operating profits and a higher tax rate