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

Mobile users holding phones up
September 05 2018
The mobile advertiser is placing itself at the forefront of the digital revolution as companies and brands increasingly look to the web as the next forefront of advertising
Apollo 11
February 22 2018
Immersive VR, a technology company focused on the education space, was the first company Sure backed
ipad
September 20 2018
“Cello Health is successfully building its early stage asset development advisory platform for biotech clients, as well as growing its core later stage and post-launch franchise with pharmaceutical clients”

© 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