Shares in ITV (LON:ITV) have lost ground in today’s session as Barclays lowered its rating on the blue-chip broadcaster, arguing that the group’s results were ‘only in line,’ WebFG News reports. The comments came after the company updated investors on its full-year performance yesterday, revealing a drop in full-year earnings and disclosing that its advertising revenue had been impacted by the ‘uncertain economic environment’.
As of 14:29 GMT, ITV’s share price had lost 2.56 percent to 155.85p. The stock is underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.83 percent in the red at 7,171.76 points.
Barclays lowers stance on ITV
Barclays trimmed its rating on ITV to ‘equal weight’ today, lowering its price target on the shares from 200p to 180p. WebFG News quoted the analysts as explaining that the broadcaster’s results for last year ‘only in line, unlike previous years’ and with the end of its previous special dividend as management want to keep some headroom for M&A.
The broker further explained that while ITV’s new chief executive Carolyn McCall’s strategic refresh “might end up being eminently sensible,” its financial impact will not be known until the broadcaster’s interims at the end of July at best, or until the company’s investor day in September.
“This creates uncertainty and the fear of re-investment is an overhang,” the analysts pointed out.
Other analysts on broadcaster
Citigroup meanwhile remains bullish on ITV, having reiterated its ‘buy’ rating on the shares today, with a price target of 220p, while HSBC downgraded the blue-chip broadcaster to a ‘hold,’ valuing the stock at 180p. According to MarketBeat, the company currently has a consensus ‘hold’ rating and an average price target of 197.93p.