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ITV share price: Analysts weigh in on group after capital markets day

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Liberum argues that while a capital markets day at ITV (LON:ITV) showed how the group is broadening its business it did not remove the uncertainty over its bid for Big Brother maker Endemol Shine or current TV trading, Citywire reports. Proactive Investors meanwhile has quoted Barclays as commenting that the blue-chip broadcaster was ‘very sensible’ in its update to investors.

ITV’s share price fell in the previous session, shedding 0.72 percent to close at 151.91p. The stock underperformed the broader UK market, with the benchmark FTSE 100 index adding 36.20 points to close 0.49 percent higher at 7,367.32, with investors hoping that the trade tension between the US and China is subsiding.

Liberum still bullish on ITV

Liberum retained its ‘buy’ rating and price target of 275p on ITV, following the group’s CMD this week, which signalled that the broadcaster was broadening its business. The FTSE 100 group’s chief executive Carolyn McCall further said that the company was in talks with potential partners for its planned British streaming service and hopes to agree an outline deal over the coming months.

“There was nothing said on a potential Endemol bid but ITV state it was happy with the state of its current production assets, which may suggest a bid is less likely,” the broker’s analyst Ian Whittaker commented, as quoted by Citywire, adding that “given the market’s attention on current TV trading and an Endemol bid, the day is unlikely to provide a catalyst until the market feels comfortable on both these situations”.

‘Very sensible’ CMD update

Proactive Investors meanwhile quoted Barclays Capital as commenting that while everything said at ITV’s CMD was ‘very sensible,’ most investors currently believed that “the free-to-air model is under existential threat,” which meant that they would not “believe ITV’s medium-term plan until earnings improve”.

The broker added that speculation about whether ITV would put in an offer to buy Endemol Shine was another source of uncertainty.

As of 07:59 BST, Friday, 21 September, ITV plc share price is 151.91p.

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