Liberum argues that while the decline in TV viewing is a concern for ITV (LON:ITV) and other broadcasters, the real problem is the measurement that is being used, Citywire reports. The comments came as the analysts retained their bullish stance on the blue-chip broadcaster.
ITV’s share price fell in the previous session, giving up 1.42 percent to close at 160.00p. The decline was largely in line with losses in the broader UK market, with the benchmark FTSE 100 index giving up 91.94 points to close 1.22 percent lower at 7,418.34, pressured by expectations for a rate hike on the other side of the Atlantic.
Liberum still bullish on ITV
Liberum reaffirmed ITV as a ‘buy’ yesterday, with a price target of 260p on the shares. Citywire quoted the broker’s analyst Ian Whittaker as commenting that the ‘supposed decline’ in viewing figures among young people had “more to do with measurement systems not capturing viewing on devices such as PCs” rather than a decrease in the number of people watching content.
“The latest research proves that in reality TV in particular with the new panel recording a c.25-percent uplift in audience numbers on some shows,” the analyst pointed out.
The update comes after the blue-chip broadcaster announced earlier this week, responding to media speculation, that it did not intend to bid for Endemol Shine, the company behind programmes such as Big Brother, The Fall, MasterChef and Peaky Blinders.
Other analysts on group
Barclays, which rates ITV as an ‘equal weight,’ lowered its price target on the shares from 185p to 180p last month. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 192.46p.
ITV is scheduled to update investors on its third-quarter performance on November 7.