Update shared on 22 Nov 2025
Narrative Update: ITV Price Target Adjusted
Analysts have lowered their price target for ITV shares from £1.12 to £1.05. They cite slightly reduced growth and profitability expectations in their latest outlook.
Analyst Commentary
Bullish Takeaways
- Bullish analysts continue to highlight ITV's underlying operational strength and maintain an Overweight rating, despite the reduced price target.
- The company's valuation is still seen as attractive, with room for upside as macroeconomic headwinds begin to ease.
- Recent strategic initiatives and a robust content portfolio support optimism for future audience growth and digital engagement.
- Execution on cost management and digital transformation efforts is viewed as supportive of long-term profitability.
Bearish Takeaways
- Bearish analysts remain cautious about slightly reduced growth and earnings expectations, which has driven the downward adjustment in target price.
- Concerns persist regarding the sustainability of advertising revenues in a challenging market environment.
- Intense competition and evolving consumer habits continue to pose risks to both traditional and digital segments.
What's in the News
- Comcast is in discussions to acquire ITV's media and entertainment division, a move that could significantly reshape the UK's broadcasting sector (Bloomberg).
- ITV has confirmed preliminary talks regarding a potential sale of its media and entertainment business to Sky Limited for an enterprise value of £1.6 billion. No agreement has been reached yet (ITV statement).
- Any possible sale would involve ITV's terrestrial channels and streaming platform ITVX, while ITV Studios, the production arm, would remain with the company (ITV statement).
- Comcast, which owns Sky, is among several companies interested in ITV's operations. The negotiations are still at an early stage, and there is no guarantee a deal will be finalized (ITV statement, Bloomberg).
Valuation Changes
- Fair Value remains unchanged at £0.80 per share.
- The Discount Rate has decreased slightly from 7.25% to 7.15%.
- Revenue Growth has fallen modestly from 2.69% to 2.63%.
- Net Profit Margin has edged down from 6.27% to 6.15%.
- The future P/E ratio has risen slightly from 15.76x to 16.06x.
Disclaimer
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