ITV PLC (LON:ITV) was upgraded by Deutsche Bank as shares in some European broadcaster reach “attractive” buying levels at almost decade lows.
“Traditional media formats including TV and Print have come under significant structural pressure over the past few years as consumers have moved online and advertisers have followed suit.
“However, TV has fared better than its print peers and, with enough content and digital avenues of their own to keep their viewers engaged, should be able to maintain their not-insignificant share of the advertising pie going forward,” said analyst Nizla Naizer in a note to clients on Wednesday.
She said that this slice of the pie is around a quarter of the five largest European markets.
The Deutsche analysts added that she believes the structural pressures caused by the influx of streaming video services such as Netflix and Amazon Prime have been priced into the sector, particularly following the de-rating of shares in 2020.
ITV’s recent share price, having sunk below 60p in March and April, has returned to those lows last seen in 2011, in early August ahead of this Thursday's interim results.
That level makes for an “attractive entry point”, said Naizer, leading to the recommendation being bumped up to ‘buy’ from ‘hold’ and the target price hiked to 120p from 80p.