Analysts have lowered their price target for ITV from £0.85 to £0.80, citing slightly reduced forecasts for revenue growth and profit margins in their latest models.
What's in the News
- Comcast is in discussions to acquire ITV's broadcasting and media division, potentially altering the UK broadcasting sector (Bloomberg).
- The discussions focus on ITV's media and entertainment arm, which includes terrestrial channels and the ITVX streaming service. ITV Studios would remain separate.
- Any deal could see ITV's TV business combined with Sky, a Comcast subsidiary, to create a leading broadcast and streaming group in the UK.
- The talks are at an early stage and no agreement has been reached. Both ITV and Comcast have declined to comment publicly thus far.
- ITV remains publicly traded with a market capitalization of £2.5 billion.
Valuation Changes
- Fair Value: The price target per share has decreased from £0.85 to £0.80.
- Discount Rate: Slightly lowered from 7.30% to 7.25%.
- Revenue Growth: The projection has been reduced modestly from 2.76% to 2.69%.
- Net Profit Margin: The forecast has dipped from 6.81% to 6.27%.
- Future P/E: The expected price-to-earnings ratio has risen marginally from 15.6x to 15.8x.
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