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ITV share price supported by Liberum comments

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ITV’s (LON:ITV) share price rose in the previous session, finding support in comments by Liberum which lifted its rating on the shares. The move comes as the blue-chip broadcaster prepares to update investors on its half-year performance on July 24.

ITV’s share price added 1.27 percent to end trading at 111.30p yesterday, outperforming the broader London market as the benchmark FTSE 100 index rose 0.60 percent. The group’s shares have given up more than 35 percent of their value over the past year, as compared with about a 0.3-percent fall in the Footsie.

Liberum lifts rating on ITV

Liberum lifted its rating on ITV from ‘hold’ to ‘buy’ yesterday, while leaving its target on the share price unchanged at 145p. Proactive Investors quoted the broker as commenting that while it had not changed its forecasts and target price, “with the shares now 25 percent below our target price and 40 percent below our discounted cash flow valuation, we feel the correction has been too drastic especially as ITV’s secular position is better than the market thinks”.

The broker further reckons that short-term, ITV’s “first-half results should provide some relief, given ‘Love Island’ and signs advertisers are shifting spending into ITV1”.

The FTSE 100 company’s interims later this month will come after the broadcaster disclosed in May that its advertising revenue had fallen in the first three months of the year amid economic and political uncertainty. ITV, however, continues to expect to deliver double digit growth in online revenue and good organic revenue growth in ITV Studios over the full year.

Other analysts on broadcaster

The 17 analysts offering 12-month targets for the ITV share price for the Financial Times have a median target of 130.00p, with a high estimate of 180.00p and a low estimate of 96.00p. As of July 16, the consensus forecast amongst 20 polled investment analysts covering the blue-chip broadcaster has it that the company will outperform the market.

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