Sky share price: RBC lowers rating but hikes valuation on group

Analysts believe Fox is likely to raise offer for pay-TV provider

Sky share price: RBC lowers rating but hikes valuation on group

RBC Capital Markets has lowered its rating on Sky (LON:SKY), while raising its price target on the shares, arguing that Twenty-First Century Fox is likely to bump up its offer for the UK group, Proactive Investors reports. The comments came after it emerged this week that the pay-TV provider and rival BT Group (LON:BT.A) would pay less for the majority of English Premier League matches.

Sky’s share price has advanced in London in today’s trading, having added 0.79 percent to 1,097.55p as of 14:18 GMT. The shares are marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.60 percent higher at 7,277.86 points.

RBC lifts price target

RBC Capital Markets lowered its rating on Sky to ‘sector performer,’ while lifting its price target on the shares from 1,075p to 1,150p.

Proactive Investors quoted the analysts as explaining in a note to clients that post the renewal of FA Premier League rights the group’s shares were now trading in line with 21st Century Fox’s takeover offer. The broker believes that Fox is likely to bump up its offer for the London-listed company to get shareholder approval at the extraordinary general meeting, should the deal receive regulatory clearance.

“Our new price target is based on our estimate of the required sweetening of the terms to get the deal through,” RBC said, adding that it believed that there was “a very high probability of Sky being acquired”.

Other analysts on Sky

Credit Suisse meanwhile continues to see the company as ‘neutral,’ valuing the shares at 1,075p, while Liberum, which rates Sky as a ‘hold,’ boosted its price target on the stock from 930p to 970p this week. According to MarketBeat, the FTSE 100 company currently has a consensus ‘buy’ rating and an average price target of 1,122.50p.

As of 14:48 GMT, Friday, 16 February, Sky Plc share price is 1,099.05p.

Top Equities Brokers

0 Brokers added for comparison:
Clear all