ITV share price: UBS flags lacklustre Q3 revenue

Analysts trim valuation on shares ahead of group’s third-quarter update

ITV share price: UBS flags lacklustre Q3 revenue

UBS expects ITV’s (LON:ITV) third-quarter revenue to be little changed, Proactive Investors reports. The comments come as the broadcasting group prepares to update investors on its performance on November 7.

ITV’s share price has fallen deep into the red in today’s session, having given up 1.43 percent to 155.20p as of 13:46 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.03 percent higher at 7,056.97 points. The group’s shares have lost more than 12 percent of their value over the past year, as compared with about a 6.5-percent fall in the Footsie.

UBS weighs in on ITV

UBS, which views ITV as a ‘neutral,’ lowered its price target on the shares from 165p to 160p. Proactive Investors reports that the analysts expect the company to report  broadcast and online revenues of £461 million, down 0.5 percent year-on-year, and ITV Studios revenue of £209 million, up 2.5 percent year-on-year. The broker also expects third-quarter advertising revenues to have fallen by one percent year-on-year, in contrast to the company’s guidance of flat advertising revenues.

UBS has pointed to “weak TV viewing trends in September (ITV Family viewing minutes down -8%) and a bearish tone from Media Buyers”. Proactive Investors notes that while the blue-chip broadcaster is often touted as a player in industry consolidation – either as predator or prey – the broker reckons that widespread merger and acquisition activity is unlikely in Europe due to a lack of visible synergies.

Other analysts on group

The 17 analysts offering 12-month price targets for ITV for the Financial Times have a median target of 190.00p on the shares, with a high estimate of 275.00p and a low estimate of 110.00p. As of October 13, the consensus forecast amongst 19 polled investment analysts covering the blue-chip group has it that the company will outperform the market.

As of 14:02 BST, Thursday, 18 October, ITV plc share price is 154.75p.

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