It also shaved its earnings per share forecast for ITV by 9% for 2017-18, pointing out that it is now at the bottom of the consensus range.
“We argue the next decade will be harder than the past one for FTA [free to air] broadcasters, as new consumer models devalue the mass reach of TV advertising,” Macquarie said in a note to clients.
“We would turn buyers again for consolidation and a cyclical upturn, but first we need to see lower consensus estimates.”
The broker reckons ITV’s advantage as a mass advertiser is quickly being eroded by the internet and specifically ‘mass engagement on digital channels’.
ITV may also struggle as the fast moving consumer goods firms continue to cut marketing budgets.
The FTSE 100-listed shares, off 3% earlier in the session, were down 1.2%, or 1.9p at 159.2p around 10am, with Macquarie maintaining a target price of 110p on the stock.