It is too early ‘to be constructive on ITV PLC (LSE:ITV), according to the number crunchers at Barclays Capital.
They repeated their 'neutral' call on the stock in the broadcaster after better than expected first-quarter revenue numbers.
The stock is only a ‘buy’ if investors believe the UK will avoid recession.
“Otherwise, the stock market has never ever properly rallied ahead of recession-related downgrades and that is even more true for cyclicals,” said Barclays in a note to clients.
“Therefore, we feel it is too early to become constructive on ITV.
“You only buy broadcasters at the bottom of the macrocycle these days and we are not there yet.”
Heading towards the close, the shares were flat at just over 69p.
Earlier, ITV said total advertising revenue climbed 16% to £468mln in the first three months of the year, beating average City forecasts of £454mln.
Good demand was reported across the majority of advertising sectors, with ad sales up 15% in January, 20% in February and 15% in March compared to the same period in 2021. Digital advertising revenue was up 27%.
ITV Studios deliveries included a second series of Noughts and Crosses and of Physical, new dramas Murder in Provence and Holding, and Miss Marple series Why Didn't They Ask Evans.