This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
The current share price breakout opens the door for a return to the high of late May 2017. Analysts at Societe Generale issued a double upgrade on the shares (from Sell to Buy; TP upped to 220p) suggesting the shares riding a World Cup wave, with huge viewing figures, bolstered by the success of Love Island. Shares unperturbed by search for new COO (retiring). Shares boosted in May by M&A speculation.
Risks to ITV shares include a fall in traditional TV advertising revenues. Any major TV flops could damage ratings. Any reduction in the dividend could could hurt the 4.4% yield and, in turn, the shares. Any new media regulation or an unsuccessful replacement of the COO could be a negative.
Consensus is Bullish with 59% of brokers saying Buy and only 5% saying Sell. 70% of broker price targets suggest upside from current levels. The share price breakout could encourage upgrades from the 36% of Neutrals. The average broker target of 197p is just below our short-term objective of revisiting late May 2017 highs.
Next Event: Interim Results, 25 July
Latest Broker 12-Month Consensus: 59% Buy, 36% Hold, 5% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 4.6 | 6.7 | 22.9 | 6.5 | 0.0 | 6.9 | -30.8 | -1.0 | 21.7 |
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Prepared by Michael van Dulken, Head of Research