The economic backdrop for ITV PLC (LSE:ITV) and other broadcasters is expected to remain challenging and has led Deutsche Bank to downgrade its view on the sector.
FTSE 100-listed ITV was cut to a 'hold' rating from 'buy' by the bank, with its target price lowered to 80p from 100p.
Other European broadcasters, including ProSiebenSat and RTL were kept on 'hold' ratings.
"While the diversification into non-TV avenues and the digitization of the TV business continue to be drivers of overall growth for several of the European broadcasters in our coverage, sentiment is still driven by traditional TV advertising revenue," analysts said.
"With macro conditions still challenging in many markets, we remain on the sidelines."
On ITV in particular, the analysts said they have become "more cautious", even though they still believe its integrated advertising and subscription on demand (AVOD) approach to streaming is "the right one in a crowded market" and that its ITV Studios arm is a valuable asset that "could see mid-single-digit growth in the mid term".
But in the near term, with TV ad revenue forecast to decline 10% in the fourth quarter and the market showing "little sign of recovery", the downgrade was made.