Sky share price: Macquarie retains ‘hold’ stance after Comcast bid

US cable giant seen as unlikely to demand radical shift in strategy

Sky share price: Macquarie retains ‘hold’ stance after Comcast bid

Macquarie continues to see Sky (LON:SKY) as a ‘hold’ after Comcast outbid Twenty-First Century Fox in the battle for the FTSE 100 pay-TV provider, while lifting their price target on the shares to match the winning bid. The move came as the FTSE 100 group recommended yesterday that shareholders accept Comcast’s offer of £17.28 per share, beating 21st Century Fox’s £15.67 per Sky share.

Sky’s share price rallied in the previous session, gaining 8.61 percent to close at 1,721.50p, ending trading at the top of the FTSE 100 index which closed in negative territory. The group’s shares have added a little over 88 percent to their value over the past year.

Macquarie see Sky as ‘hold’

Macquarie reaffirmed Sky as ‘neutral’ yesterday, while lifting its price target on the shares from 1,550p to 1,728p, to match Comcast’s winning bid for the company.

“Comcast delivered a knockout blow in the race for Sky,” the broker’s analyst  Guy Peddy commented, as quoted by Citywire, adding that the broker expected the US cable giant “to win control and for Sky to be delisted in the coming weeks”.

“Sky’s importance in the UK remains and with Comcast likely to dictate the strategy going forwards we would expect a continued focus on telecoms, broadband, and mobile,” the analyst further pointed out, as quoted by the newswire.

Other analysts on FTSE 100 group

Shore Capital reaffirmed Sky as a ‘hold’ yesterday, without specifying a price target on the shares, while Liberum, which also rates the pay-TV provider as a ‘hold,’ boosted its valuation on the stock rom 1,400p to 1,728p. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 1,350.40p.

As of 08:01 BST, Tuesday, 25 September, Sky Plc share price is 1,721.50p.

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