City broker Liberum isn’t expecting any quick changes at the top of ITV Plc (LON:ITV) despite media reports that executive head hunters have been hired by the broadcaster.
Analyst Ian Whittaker instead reckons the recruiters have been asked to help long term succession planning for any eventual departure of either chief executive Adam Crozier or chief financial officer Ian Griffiths.
“The suggestion is that there is no immediate departure for either of them and we think that is the right interpretation: this looks more like WPP’s move last year to start thinking about CEO Sir Martin Sorrell’s departure, even though this is not expected for several years,” Whittaker said in a note.
“The one point we would make is that our view has been that Ian Griffiths was a natural successor to Adam Crozier if / when the latter moved on but this move does not rule this out (e.g. ITV would need a new CFO if Ian Griffiths became CEO).”
Whittaker rates ITV as ‘the top pick’ in the sector. With a ‘buy’ rating and a 340p price target the Liberum analyst sees as much as 65% upside to the broadcaster’s current share price of around 206p.
He highlights that ITV has an attractive market leading position, attractive content assets, and is attractively valued.
Moreover, the analyst describes the free-to-air broadcaster as an obvious mergers and acquisition target whilst pointing to the 10% equity position held by active sector consolidator Liberty.