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Sky share price: Jefferies trims stance on pay-TV group

Jefferies has trimmed its rating on Sky (LON:SKY) and has lowered its price target on the shares in line with Comcast’s offer price. The move came after the US cable giant outbid Twenty-First Century Fox in the battle for the FTSE 100 pay-TV provider.

Sky’s share price has been little changed in London this morning, having inched 0.03 percent higher to 1,726.50p as of 10:27 BST. The advance is largely in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.02 percent higher at 7,509.37 points.

Jefferies trims stance on Sky

Jefferies lowered its rating on Sky from ‘buy’ to ‘hold’ yesterday, and trimmed its price target on the shares from 1,750p to 1,728p, matching Comcast’s bidding price. The US group’s offer beat 21st Century Fox’s bid of £15.67 per Sky share.

“We position our new price target in line with the Comcast offer price,” the broker’s analyst Jerry Dellis commented, as quoted by Citywire, adding that the move reflected what the broker saw “as the high probability of acceptance, the expected short timeframe to closing, and the absence of anticipated Sky dividends before closing”.

Dellis expects Comcast’s bid ‘to be accepted, allowing the acquisition to close by end-October.

His comments come after Macquarie reaffirmed Sky as a ‘hold’ this week, lifting its valuation to match Comcast’s price, also noting that it expects the US cable giant “to win control and for Sky to be delisted in the coming weeks”.

Comcast rounds up small investors

The Telegraph meanwhile reported yesterday that the US cable giant had appointed consultants DF King to round up small Sky shareholders as it attempts to pass the 50-percent threshold required to seize control of the group.

As of 10:41 BST, Wednesday, 26 September, Sky Plc share price is 849.25p.

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