UBS cut Sky PLC’s (LON:SKY) price target to 1,490p from 1,500p and reiterated its ‘buy’ rating, amid a weaker performance in Germany.
In a note to clients, analysts at UBS said that the company's third quarter financials were solid with a good performance in the UK and Italy but Germany was weaker with a 30,000 reduction in net customer additions.
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They explained that the fourth quarter is traditionally a stronger for absolute profitability compared to the third. However, year-on-year EBITDA growth will be impacted by the re-phasing of Premier League rights costs and a tough comparable fourth quarter in 2017.
Analysts said: “Nevertheless, we expect consensus estimates to be broadly unchanged post third quarter results and re-iterate our view that profitability is starting to ramp as Sky laps a number of cost step ups.”
In morning trading, company’s shares dropped 0.15% to 1,317.0p.