Weakness in ITV (LON:ITV) shares has created a buying opportunity, Shore Capital has said. The comments came as the analysts reiterated their bullish stance on the UK broadcaster following its announcement that it had appointed easyJet’s (LON:EZJ) boss to the top job.
ITV’s share price, which rallied in the previous session, has slipped into the red this morning, having shed 1.16 percent to 176.00p as of 09:34 BST, and underperforming the benchmark FTSE 100 index which currently stands 0.01 percent lower at 7,403.74 points. The group’s shares have lost more than seven percent of their value over the past year, and are down by some 14 percent in the year-to-date.
Shore Capital reiterated its ‘buy’ rating on ITV, following the announcement that the company had appointed easyJet’s boss Carolyn McCall to replace Adam Crozier at the helm of the British broadcaster. She is set to join ITV on January 8, and will receive salary of £900,000 and a pension allowance of 15 percent of her pay. She will further be able to participate in the group’s existing annual bonus plan up to a maximum of 180 percent of salary, and the long-term incentive plan up to 265 percent of salary.
“More broadly we remain positive on ITV ahead of its interim results on 26 July, in view of recent share price weakness which has given rise to valuation which, in our view, is being weighed down by short-term concerns over advertising spend and overlooks its medium term attractions,” the broker’s analyst Roddy Davidson pointed out, as quoted by Citywire.
The 19 analysts offering 12-month price targets for ITV for the Financial Times have a median target of 225.00p on the shares, with a high estimate of 320.00p and a low estimate of 145.00p. As of July 14, the consensus forecast amongst 23 polled investment analysts covering the blue-chip group has it that the company will outperform the market.