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ITV share price: Liberum points to big online opportunity

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Liberum remains bullish on ITV (LON:ITV), arguing that video on demand has the potential to be a huge opportunity for the blue-chip broadcaster, Citywire has reported. The move follows recent reports that the blue-chip company is considering entering into a £1-billion joint venture with the BBC by buying half of broadcaster UKTV.

ITV’s share price rose in the previous session, adding 1.68 percent to 172.00p, outperforming the broader UK market, with the benchmark FTSE 100 index gaining 0.73 percent to close at 7,737.43 points. The group’s shares have lost more than six percent of their value over the past year, as compared with about a 2.8-percent gain in the Footsie.

Liberum sees ITV as ‘buy’

Liberum reaffirmed ITV as a ‘buy’ yesterday, lifting its price target on the shares from 265p to 275p.

“There is a huge opportunity for ITV in the online video on demand space,” the broker’s analyst Ian Whittaker commented, as quoted by Citywire, adding that the broker estimated that more than 45 percent of the broadcaster’s profit will “come from its online, pay, and interactive unity and that linear TV, although resilient, will become less important to the business”.

The analyst further reckons that if the FTSE 100 group could “capture a greater share of the online video on demand market” there could be about 20-percent upside to long-term forecasts.

Other analysts on group

The 21 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 June 8, the consensus forecast amongst 21 polled investment analysts covering the blue-chip broadcaster has it that the company will outperform the market. 

As of 08:07 BST, Tuesday, 12 June, ITV plc share price is 172.00p.

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