How big a lift will Euro 2024 give ITV PLC (LSE:ITV)?
A sizeable one, if the numbers being crunched by Deutsche Bank are a guide.
Ahead of England’s semi-final against the Netherlands tonight, the German bank suggested that due to England’s good run plus Love Island, which is also on currently, it is upping its advertising forecast for the year.
ITV’s share price has already priced in a good tournament, says Deutsche, but still might be underestimating the impact, especially if England do make it to the final.
Second-quarter ad revenues are tipped to grow by 13% or just above the company estimate but Deutsche Bank now expects 3% [TAR] growth in the third quarter against a zero previously and 3.7% for the twelve months overall, up from 3%.
“TAR is 50% of total external revenue for ITV and where there is the most focus given the structural threats to the linear TV format from streaming etc,” said the note.
Deutsche Bank has raised its target price for ITV to 90p from 83p with a 'hold' rating.
Shares today were 82.8p.