MUMBAI: Merrill Lynch's India Media and Entertainment Industry report on the media sector post the conditional access (CAS) legislation, produced in conjunction with DSP Merrill Lynch Limited (an affiliate of Merrill Lynch & Co., Inc), maintains its "Buy" rating on Zee Telefilms.
The report maintained its "Buy" rating on Zee with Rs 135 price objective. The price objective is based on "PEG" of 1, which is lower than the global average, given Zee's superior growth profile, the report states.
However, it mentions that the key risks to the above-mentioned price objectives were:
1) slowdown in penetration of Zee Turner's pay bouquet in domestic markets.
2) weakness in viewership of its broadcasting business.
3) economic slowdown leading to weak ad markets and 
4) increased competition in global pay markets.
The report also adds that it views Zee Telefilms and TV18 (which has a 49 per cent stake in CNBC India) as potential investment plays.