Sign up Australia
Proactive Investors - Run By Investors For Investors

ITV weak on England’s World Cup exit; Goldman Sachs cuts rating on valuation grounds

Goldman Sachs downgraded its rating for the UK commercial broadcaster to ‘neutral’ from ‘buy’ in an otherwise upbeat review of European TV stocks
England fans
The US bank's analysts said they see near-term risk/reward more balanced for ITV following recent outperformance by the stock

ITV PLC (LON:ITV) saw its shares drop on Thursday as England’s semi-final exit from the World Cup dashed hopes for another advertising boost from its coverage of the tournament, while a downgrade in rating by Goldman Sachs also did some damage.

The US bank cut its rating for the UK commercial broadcaster to ‘neutral’ from ‘buy’ in an otherwise upbeat review of European TV stocks. In late morning trading, the FTSE 100-listed shares were 2.7% lower at 172.6p.

READ: ITV jumps on England World Cup and Love Island viewing figures

Goldman’s analysts said they see near-term risk/reward more balanced for ITV following recent outperformance by the stock on the back of the World Cup run and its popular Love Island reality TV dating show.

Overall, the bank’s analysts added, however, that they see "compelling opportunities" in the broadcasting sub-sector, which has underperformed against a weaker advertising backdrop across Europe.

They said softer-than-expected TV advertising trends across Europe this year reflect weak demand from large advertisers and a secular shift of ad dollars to digital.

Goldman raised its rating from France’s Television Francaise 1 to ‘buy’ from ‘hold’ and upgraded both Spain’s Mediaset Espana and Germany’s Prosiebensat 1 Media to ‘neutral’ from ‘sell’.

View full ITV profile View Profile

ITV plc Timeline

Related Articles

Students in a class
August 27 2018
The company is gaining traction in Asia where people are looking to take language courses to work or study internationally
Lego ball
September 14 2018
The company's latest push is a joint venture agreement with US-based entertainment firm Three Six Zero, which has steered the careers of pop stars such as Calvin Harris
Cello
April 16 2018
Global pharmaceutical R&D is forecast to reach $182bn by 2022 having grown at near 4% annually since 2006

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use