ITV Analyst Boosts Stock Price Target After Talpa Deal
Liberum's Ian Whittaker also increases his advertising revenue growth forecast for the U.K. TV giant.
Liberum Capital analyst Ian Whittaker on Tuesday raised his stock target price on U.K. TV giant ITV "to reflect the impact of the Talpa acquisition," which the firm recently announced.
He called the producer of The Voice "a strategic positive" that will drive a 5.8 percent increase in expected 2016 earnings per share for ITV. "We slightly increase our ITV TV advertising revenue growth forecast for 2015 to 5.5 percent from 5 percent," Whittaker added. He reiterated that ITV was his top media stock pick.
All in all, he raised his price target on the stock of ITV from $4.54 (3.10 pounds) to $4.83 (3.30 pounds).
"It makes ITV into a truly global force in content," Whittaker said about the Talpa deal. "Talpa has ownership of crucial IP rights, and ITV has demonstrated it can both make major deals and return more cash back."
Discussing ITV's ad outlook, he said: "Given the strong start to the year and the Rugby World Cup in September, risk could be on the upside."