ITV’s point of interest in its latest update was the solid 12% advertising growth forecast for the second quarter boosted by a strong programme grid including the '24 Euros, said Deutsche Bank.
While the weakness in the Studios business is expected to continue into quarter two, management added that the arm’s revenue would be flat for the year, implying an improved delivery schedule over the remainder of the year, noted the bank.
“While the return to growth in TAR (total advertising revenue) and an improved outlook in H2 for Studios are encouraging, we believe at current levels there is balanced risk-reward.”
Hold is the broker’s view but the target price rises to 90p from 80p.