ITV share price: Liberum remains bullish on broadcaster
Analysts expect company to benefit from OnTheMarket’s float
Liberum remains bullish on ITV (LON:ITV), expecting the blue-chip broadcaster to be a beneficiary of property portal OnTheMarket’s flotation, Citywire reports. The comments come as the FTSE 100 group prepares to welcome its new chief executive early next year.
ITV’s share price closed 0.18 percent lower at 165.00p yesterday, underperforming the broader UK market, with the benchmark FTSE 100 index ending the session marginally higher. The broadcaster’s shares have lost more than 15 percent of their value this year.
Liberum still bullish on ITV
Liberum reiterated its ‘buy’ recommendation on ITV yesterday, with a price target of 330p on the stock. Citywire quoted the broker’s analyst Ian Whittaker as pointing to OnTheMarket’s listing which aims to raise £50 million ‘most of which is earmarked for an advertising campaign’.
“This could see a nice tailwind in 2018 for ITV – the assumption would be OnTheMarket would weight its campaign to TV to gain maximum reach,” the analyst explained, as quoted by the newswire, adding that assuming £15 million of that £50 million raised ended up on the blue-chip broadcaster, that would be equal to about a one-percent boost in ITV TV net advertising revenue.
“But it would also prompt rivals such as [Zoopla] and Rightmove to also up spending, providing a ripple effect,” the analyst concluded.
The comments came after Morgan Stanley recently reiterated its bullish stance on the company, pointing to a raft of factors, including improving momentum in advertising trends.
Other analysts on group
The 21 analysts offering 12-month price targets for ITV for the Financial Times have a median target of 210.00p on the shares, with a high estimate of 330.00p and a low estimate of 110.00p. As of December 16, the consensus forecast amongst 22 polled investment analysts covering the blue-chip group has it that the company will outperform the market.